10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2014

Or

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the transition period from                to             

Commission File Number: 0-10436

L.B. Foster Company

(Exact name of Registrant as specified in its charter)

Pennsylvania	25-1324733
(State of Incorporation)	(I. R. S. Employer Identification No.)

415 Holiday Drive, Pittsburgh, Pennsylvania	15220
(Address of principal executive offices)	(Zip Code)

(412) 928-3400

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at October 27, 2014
Common Stock, Par Value $.01		10,351,381 Shares

L.B. FOSTER COMPANY AND SUBSIDIARIES

INDEX

	Page
PART I. Financial Information
Item 1. Financial Statements (unaudited):
Condensed Consolidated Balance Sheets		3
Condensed Consolidated Statements of Operations		4
Condensed Consolidated Statements of Comprehensive Income		5
Condensed Consolidated Statements of Cash Flows		6
Notes to Condensed Consolidated Financial Statements		8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		22
Item 3. Quantitative and Qualitative Disclosures about Market Risk		32
Item 4. Controls and Procedures		32
PART II. Other Information
Item 1. Legal Proceedings		33
Item 1A. Risk Factors		33
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		33
Item 4. Mine Safety Disclosures		33
Item 6. Exhibits		34
Signature		35
Index to Exhibits		36

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Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

L.B. FOSTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	September 30, 2014			December 31, 2013
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	86,516		$	64,623
Accounts receivable - net		91,178			98,437
Inventories - net		90,795			76,956
Current deferred tax assets		461			461
Prepaid income tax		233			4,741
Other current assets		3,556			2,000
Current assets of discontinued operations		14			149
Total current assets		272,753			247,367
Property, plant, and equipment - net		63,105			50,109
Other assets:
Goodwill		59,603			57,781
Other intangibles - net		49,789			51,846
Investments		5,365			5,090
Other assets		1,750			1,461
Total Assets	$	452,365		$	413,654
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	60,229		$	46,620
Deferred revenue		9,810			5,715
Accrued payroll and employee benefits		9,333			8,927
Accrued warranty		8,610			7,483
Current maturities of long-term debt		104			31
Current deferred tax liabilities		179			179
Other accrued liabilities		8,885			6,501
Liabilities of discontinued operations		—			26
Total current liabilities		97,150			75,482
Long-term debt		270			25
Deferred tax liabilities		11,086			11,798
Other long-term liabilities		9,378			9,952
Stockholders’ equity:
Common stock, par value $.01, authorized 20,000,000 shares; shares issued at September 30, 2014 and December 31, 2013, 11,115,779; shares outstanding at September 30, 2014 and December 31, 2013, 10,238,906 and 10,188,521		111			111
Paid-in capital		47,649			47,239
Retained earnings		317,057			298,361
Treasury stock - at cost, common stock, shares at September 30, 2014 and December 31, 2013, 876,873 and 927,258		(23,242	)		(24,731	)
Accumulated other comprehensive loss		(7,094	)		(4,583	)
Total stockholders’ equity		334,481			316,397
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	452,365		$	413,654

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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L.B. FOSTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(Unaudited)						(Unaudited)
Net sales	$	167,797		$	162,248		$	446,043		$	441,505
Cost of goods sold		132,638			130,943			356,057			356,177
Gross profit		35,159			31,305			89,986			85,328
Selling and administrative expenses		20,644			17,547			58,268			52,628
Amortization expense		1,191			701			3,504			2,102
Interest expense		126			118			375			376
Interest income		(140	)		(149	)		(431	)		(494	)
Equity in income of nonconsolidated investments		(477	)		(296	)		(823	)		(892	)
Other income		(47	)		(638	)		(297	)		(953	)
		21,297			17,283			60,596			52,767
Income from continuing operations before income taxes		13,862			14,022			29,390			32,561
Income tax expense		4,743			4,229			9,774			10,560
Income from continuing operations		9,119			9,793			19,616			22,001
Discontinued operations:
(Loss) Income from discontinued operations before income taxes		(5	)		—			18			23
Income tax (benefit) expense		(2	)		—			7			9
(Loss) Income from discontinued operations		(3	)		—			11			14
Net income	$	9,116		$	9,793		$	19,627		$	22,015
Basic earnings per common share:
From continuing operations	$	0.89		$	0.96		$	1.92		$	2.16
From discontinued operations		(0.00	)		—			0.00			0.00
Basic earnings per common share	$	0.89		$	0.96		$	1.92		$	2.16
Diluted earnings per common share:
From continuing operations	$	0.88		$	0.95		$	1.90		$	2.15
From discontinued operations		(0.00	)		—			0.00			0.00
Diluted earnings per common share	$	0.88		$	0.95		$	1.90		$	2.15
Dividends paid per common share	$	0.03		$	0.03		$	0.09		$	0.09

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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L.B. FOSTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014			2013
	(Unaudited)					(Unaudited)
Net income	$	9,116		$	9,793	$	19,627		$	22,015
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment		(2,693	)		1,480		(2,648	)		(1,790	)
Reclassification of pension liability adjustments to earnings, net of tax expense of $24, $36 and $71, $109 *		47			72		137			211
Other comprehensive (loss) income, net of tax		(2,646	)		1,552		(2,511	)		(1,579	)
Comprehensive income	$	6,470		$	11,345	$	17,116		$	20,436

* Reclassifications out of accumulated other comprehensive income for pension obligations are charged to selling and administrative expense.

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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L.B. FOSTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Nine Months Ended September 30,
	2014			2013
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Income from continuing operations	$	19,616		$	22,001
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Deferred income taxes		(641	)		(661	)
Depreciation and amortization		9,247			7,098
Equity in income of nonconsolidated investments		(823	)		(892	)
Loss on sales and disposals of property, plant, and equipment		15			48
Share-based compensation		2,403			1,528
Excess income tax benefit from share-based compensation		(283	)		(192	)
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable		7,820			(28,931	)
Inventories		(11,839	)		13,392
Other current assets		(437	)		(1,676	)
Prepaid income tax		4,978			(3,418	)
Other noncurrent assets		(448	)		209
Dividends from LB Pipe & Coupling Products, LLC		630			558
Accounts payable		13,727			6,298
Deferred revenue		4,092			(3,454	)
Accrued payroll and employee benefits		475			(2,544	)
Other current liabilities		1,206			(6,231	)
Other liabilities		(114	)		(666	)
Net cash provided by continuing operating activities		49,624			2,467
Net cash provided by discontinued operations		114			257
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of property, plant, and equipment		184			—
Capital expenditures on property, plant, and equipment		(11,593	)		(5,648	)
Acquisitions		(12,786	)		—
Capital contributions to equity method investments		(82	)		—
Net cash used by continuing investing activities		(24,277	)		(5,648	)

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L.B. FOSTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(In thousands)

	Nine Months Ended September 30,
	2014			2013
	(In thousands)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of other long-term debt		(78	)		(14	)
Proceeds from other long-term debt		316			—
Proceeds from exercise of stock options and stock awards		131			35
Financing Fees		(473	)		—
Treasury stock acquisitions		(918	)		(633	)
Cash dividends on common stock paid to shareholders		(931	)		(931	)
Excess income tax benefit from share-based compensation		283			192
Net cash used by continuing financing activities		(1,670	)		(1,351	)
Effect of exchange rate changes on cash and cash equivalents		(1,898	)		(1,192	)
Net increase (decrease) in cash and cash equivalents		21,893			(5,467	)
Cash and cash equivalents at beginning of period		64,623			101,464
Cash and cash equivalents at end of period	$	86,516		$	95,997
Supplemental disclosure of cash flow information:
Interest paid	$	267		$	257
Income taxes paid	$	4,849		$	14,747

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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L.B. FOSTER COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. FINANCIAL STATEMENTS

(Dollars in thousands, except share data)

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all estimates and adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. However, actual results could differ from those estimates. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. Amounts included in the balance sheet as of December 31, 2013 were derived from our audited balance sheet. This Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In this Quarterly Report on Form 10-Q, references to “Foster,” “we,” “us,” “our,” and the “Company” refer collectively to L.B. Foster and its consolidated subsidiaries.

Recently issued accounting standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, “Revenue Recognition.” ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating its implementation approach and assessing the impact of ASU 2014-09 on our financial position and results of operations.

In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements—Going Concern—Disclosures of Uncertainties about an entity’s Ability to Continue as a Going Concern.” ASU 2014-15 provides new guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards and to provide related footnote disclosures. This new guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The requirements of ASU 2014-15 are not expected to have a significant impact on the Condensed Consolidated Financial Statements.

2. BUSINESS SEGMENTS

The Company is a leading manufacturer, fabricator, and distributor of products and services for rail, construction, energy, and utility markets. The Company is organized and evaluated by product group, which is the basis for identifying reportable segments. Each segment represents a revenue-producing component of the Company for which separate financial information is produced internally and is subject to evaluation by the Company’s chief operating decision maker in deciding how to allocate resources. Each segment is evaluated based upon their contribution to the Company’s consolidated results based upon segment profit.

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The following tables illustrate revenues and profits from continuing operations of the Company by segment for the periods indicated:

	Three Months Ended September 30, 2014				Nine Months Ended September 30, 2014
	Net Sales		Segment Profit		Net Sales		Segment Profit
Rail Products	$	102,105	$	11,533	$	283,085	$	23,685
Construction Products		49,907		3,251		119,100		7,838
Tubular Products		15,785		1,661		43,858		4,973
Total	$	167,797	$	16,445	$	446,043	$	36,496

	Three Months Ended September 30, 2013				Nine Months Ended September 30, 2013
	Net Sales		Segment Profit		Net Sales		Segment Profit
Rail Products	$	105,552	$	9,713	$	277,843	$	21,749
Construction Products		49,320		2,855		129,828		5,373
Tubular Products		7,376		985		33,834		8,139
Total	$	162,248	$	13,553	$	441,505	$	35,261

Segment profits from continuing operations, as shown above, include internal cost of capital charges for assets used in the segment at a rate of generally 1% per month. There has been no change in the measurement of segment profit from continuing operations from December 31, 2013. The internal cost of capital charges are eliminated during the consolidation process.

The following table provides a reconciliation of reportable segment net profit from continuing operations to the Company’s consolidated total:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Income for reportable segments	$	16,445		$	13,553		$	36,496		$	35,261
Interest expense		(126	)		(118	)		(375	)		(376	)
Interest income		140			149			431			494
Other income		47			638			297			953
LIFO income		302			553			500			299
Equity in income of nonconsolidated investments		477			296			823			892
Corporate expense, cost of capital elimination, and other unallocated charges		(3,423	)		(1,049	)		(8,782	)		(4,962	)
Income from continuing operations before income taxes	$	13,862		$	14,022		$	29,390		$	32,561

3. ACQUISITIONS

Carr Concrete

On July 7, 2014, the Company entered into an asset purchase agreement to acquire and assume substantially all of the assets and liabilities of Carr Concrete Corporation (Carr) for $12,491, inclusive of an accrued $200 post-closing purchase price adjustment. Carr is a provider of pre-stressed and precast concrete products located in Waverly, WV and the

9

transaction was funded with cash on hand. Included within the purchase price is $1,000 which will be held in escrow to satisfy any indemnity claims under the purchase agreement. The results of Carr’s operations for the period July 7, 2014 through September 30, 2014 are included in our Construction Products segment and were not material to the periods presented.

Ball Winch

During the prior year, the Company acquired substantially all of the assets and liabilities of Ball Winch, LLC (Ball Winch). Cash payments totaling $37,500 were made during 2013 and a post-closing working capital adjustment of $495 was paid in February 2014 resulting in a total purchase price of $37,995. Included within the purchase price was $3,300 which is held in escrow to satisfy any indemnity claims under the purchase agreement. The results of operations for Ball Winch are included in the Company’s Tubular Products segment for the nine months ended September 30, 2014.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition:

Allocation of Purchase Price	July 7, 2014 Carr Fair Value			November 7, 2013 Ball Winch Fair Value
Current assets	$	3,204		$	1,857
Other assets		145			64
Property, plant, and equipment		7,648			5,555
Goodwill		1,822			16,544
Other intangibles		1,348			14,682
Current liabilities		(1,676	)		(707	)
Total	$	12,491		$	37,995

The following table summarizes the estimates of the fair values and amortizable lives of the identifiable intangible assets acquired:

Intangible Asset	July 7, 2014 Carr Fair Value		November 7, 2013 Ball Winch Fair Value
Trade name	$	613	$	723
Technology and customer relationships		611		11,129
Non-competition agreements		124		2,830
Total identified intangible assets	$	1,348	$	14,682

The Carr purchase price allocation is based upon a preliminary valuation. If new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement recognized for assets or liabilities assumed, the Company will retrospectively adjust the amounts recognized as of the acquisition date.

The Company has concluded that intangible assets and goodwill values resulting from the transactions will be deductible for tax purposes.

4. GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying amount of goodwill at September 30, 2014 and December 31, 2013 was $59,603 and $57,781, respectively. The components of the Company’s goodwill by reporting segment are as follows:

	September 30, 2014		December 31, 2013
Rail Products	$	38,026	$	38,026
Construction Products		5,033		3,211
Tubular Products		16,544		16,544
	$	59,603	$	57,781

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The Company performs goodwill impairment tests at least annually. Qualitative factors are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test on an interim measurement date. No goodwill impairment test was required in connection with these evaluations for the nine months ended September 30, 2014. The Company performs its annual evaluation of the carrying value of its goodwill during the fourth quarter.

As of September 30, 2014, gross identified intangible assets of $44,455 are attributable to the Company’s Rail Products segment, $3,178 are attributable to the Construction Products segment, and $14,682 are attributable to the Tubular Products segment. As of December 31, 2013, gross identified intangible assets of $44,455 are attributable to the Company’s Rail Products segment, $1,830 are attributable to the Construction Products segment, and $14,682 are attributable to the Tubular Products segment.

The components of the Company’s intangible assets are as follows:

	September 30, 2014
	Weighted Average Amortization In  Years	Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Non-compete agreements	5	$	2,984	$	(552	)	$	2,432
Patents	10		639		(274	)		365
Customer relationships	23		20,484		(4,378	)		16,106
Supplier relationships	5		350		(252	)		98
Trademarks and trade names	16		7,616		(1,714	)		5,902
Technology	15		30,242		(5,356	)		24,886
		$	62,315	$	(12,526	)	$	49,789
	December 31, 2013
	Weighted Average Amortization In Years	Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Non-compete agreements	5	$	2,860	$	(117	)	$	2,743
Patents	10		639		(201	)		438
Customer relationships	23		19,960		(3,575	)		16,385
Supplier relationships	5		350		(213	)		137
Trademarks and trade names	16		7,003		(1,334	)		5,669
Technology	15		30,155		(3,681	)		26,474
		$	60,967	$	(9,121	)	$	51,846

Intangible assets are amortized over their useful lives ranging from 5 to 25 years, with a total weighted average amortization period of approximately 17 years. Amortization expense from continuing operations for the three-month periods ended September 30, 2014 and 2013 was $1,191 and $701, respectively. Amortization expense from continuing operations for the nine-month periods ended September 30, 2014 and 2013 was $3,504 and $2,102, respectively.

Estimated amortization expense from continuing operations for the remainder of 2014 and the years 2015 and thereafter is as follows:

	Amortization Expense
2014	$	1,190
2015		4,502
2016		4,328
2017		4,329
2018		4,182
2019 and thereafter		31,258
	$	49,789

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5. ACCOUNTS RECEIVABLE

Credit is extended based upon an evaluation of the customer’s financial condition and while collateral is not required, the Company often receives surety bonds that guarantee payment. Credit terms are consistent with industry standards and practices. Trade accounts receivable from continuing operations at September 30, 2014 and December 31, 2013 have been reduced by an allowance for doubtful accounts of $1,125 and $1,099, respectively.

6. INVENTORIES

Inventories of continuing operations of the Company at September 30, 2014 and December 31, 2013 are summarized in the following table:

	September 30, 2014			December 31, 2013
Finished goods	$	65,756		$	55,166
Work-in-process		12,186			11,332
Raw materials		21,380			19,485
Total inventories at current costs		99,322			85,983
Less: LIFO reserve		(8,527	)		(9,027	)
	$	90,795		$	76,956

Inventories of the Company’s continuing operations are generally valued at the lower of last-in, first-out (LIFO) cost or market. Other inventories of the Company are valued at average cost or market, whichever is lower. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels and costs at that time. Interim LIFO calculations are based on management’s estimates of expected year-end levels and costs.

7. INVESTMENTS

The Company is a member of a joint venture, LB Pipe & Coupling Products, LLC (LB Pipe JV), in which it maintains a 45% ownership interest. The LB Pipe JV manufactures, markets, and sells various precision coupling products for the energy, utility, and construction markets and is scheduled to terminate on June 30, 2019.

Under applicable guidance for variable interest entities in ASC 810, “Consolidation,” the Company determined that the LB Pipe JV is a variable interest entity. The Company concluded that it is not the primary beneficiary of the variable interest entity, as the Company does not have a controlling financial interest and does not have the power to direct the activities that most significantly impact the economic performance of the LB Pipe JV. Accordingly, the Company concluded that the equity method of accounting remains appropriate.

As of September 30, 2014 and December 31, 2013, the Company had a nonconsolidated equity method investment of $5,283 and $5,090, respectively, in the LB Pipe JV and other investments totaling $82 as of September 30, 2014.

The Company recorded equity in the income of the LB Pipe JV of approximately $477 and $296 for the three months ended September 30, 2014 and 2013, respectively. For the nine months ended September 30, 2014 and 2013, the Company recorded equity in the income of the LB Pipe JV of approximately $823 and $892, respectively. During each of the three months ended September 30, 2014 and 2013 the Company received cash distributions of $90. Cash distributions of $630 and $558 were received for the nine months ended September 30, 2014 and 2013, respectively. There were no changes to the Company’s 45% ownership interest as a result of the proportional distribution.

The Company’s exposure to loss results from its capital contributions, net of the Company’s share of the LB Pipe JV’s income or loss, and its net investment in the direct financing lease covering the facility used by the LB Pipe JV for its operations. The carrying amounts with the maximum exposure to loss of the Company at September 30, 2014 and December 31, 2013, respectively, are as follows:

	September 30, 2014		December 31, 2013
LB Pipe JV equity method investment	$	5,283	$	5,090
Net investment in direct financing lease		1,144		1,224
	$	6,427	$	6,314

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The Company is leasing five acres of land and two facilities to the LB Pipe JV through June 30, 2019, with a 5.5 year renewal period. In November 2012, the Company executed the first amendment to its lease with the LB Pipe JV. The amendment included the addition of a second facility built by the Company that is now leased to the LB Pipe JV. The current monthly lease payments approximate $17, with a balloon payment of approximately $488, which is required to be paid either at the termination of the lease, allocated over the renewal period, or during the initial term of the lease. This lease qualifies as a direct financing lease under the applicable guidance in ASC 840-30, “Leases.” The Company maintained a net investment in this direct financing lease of approximately $1,144 and $1,224 at September 30, 2014 and December 31, 2013, respectively.

The following is a schedule of the direct financing minimum lease payments for the remainder of 2014 and the years 2015 and thereafter:

	Minimum Lease Payments
2014	$	34
2015		122
2016		131
2017		140
2018		150
2019 and thereafter		567
	$	1,144

8. DEFERRED REVENUE

Deferred revenue of $9,810 and $5,715 as of September 30, 2014 and December 31, 2013, respectively, consists of customer payments received for which the revenue recognition criteria have not yet been met as well as billings in excess of costs on percentage of completion projects. Advanced payments from customers typically relate to contracts that the Company has significantly fulfilled its obligations and the customers have paid, but due to the Company’s continuing involvement with the material, revenue is precluded from being recognized until title passes to the customer.

9. BORROWINGS

United States

On September 23, 2014, the Company, its domestic subsidiaries, and certain of its Canadian subsidiaries entered into an amended and restated $200,000 Revolving Credit Facility Credit Agreement (“Amended Credit Agreement”) with PNC Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A., and Citizens Bank of Pennsylvania. This Amended Credit Agreement modifies the prior revolving credit facility which had a maximum credit line of $125,000. The Amended Credit Agreement provides for a five-year, unsecured revolving credit facility that permits borrowing up to $200,000 for the U.S. borrowers and a sublimit of the equivalent of $25,000 U.S. dollars that is available to the Canadian borrowers. The Amended Credit Agreement also modifies the accordion feature in the prior revolving credit facility which permitted a maximum increase of $50,000. The Amended Credit Agreement’s accordion feature permits the Company to increase the available revolving borrowings under the facility by up to an additional $100,000 subject to the Company’s receipt of increased commitments from existing lenders or new commitments from new lenders and to certain conditions being satisfied. The Amended Credit Agreement also increases the sublimit for the issuance of trade and standby letters of credit from $20,000 to $30,000.

Borrowings under the Amended Credit Agreement will bear interest at rates based upon either the base rate or Euro-rate plus applicable margins. Applicable margins are dictated by the ratio of the Company’s indebtedness less cash on hand to the Company’s consolidated EBITDA, as defined in the underlying Amended Credit Agreement. The base rate is the highest of (a) PNC Bank’s prime rate, (b) the Federal Funds Rate plus 0.50% or (c) the daily Euro-rate (as defined in the Amended Credit Agreement) plus 1.00%. The base rate and Euro-rate spreads range from 0.00% to 1.00% and 1.00% to 2.00%, respectively.

The Amended Credit Agreement includes two financial covenants: (a) Leverage Ratio, defined as the Company’s indebtedness less cash on hand, in excess of $15,000, divided by the Company’s consolidated EBITDA, which must not exceed 3.25 to 1.00 and (b) Minimum Interest Coverage, defined as consolidated EBITDA less capital expenditures divided by consolidated interest expense, which must be no less than 3.00 to 1.00.

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The Amended Credit Agreement permits the Company to pay dividends, distributions, and make redemptions with respect to its stock provided no event of default or potential default (as defined in the Amended Credit Agreement) has occurred prior to or after giving effect to the dividend, distribution, or redemption. Dividends, distributions, and redemptions are capped at $25,000 per year when funds are drawn on the facility. If no drawings on the facility exist, dividends, distributions, and redemptions in excess of $25,000 per year are subjected to a limitation of $75,000 in the aggregate. The $75,000 aggregate limitation also permits certain loans, investments, and acquisitions.

Other restrictions exist at all times including, but not limited to, limitation of the Company’s sale of assets, other indebtedness incurred by either the borrowers or the non-borrower subsidiaries of the Company, guarantees, and liens.

As of September 30, 2014, the Company was in compliance with the Amended Credit Agreement’s covenants.

The Company had no outstanding borrowings under the revolving credit facility at September 30, 2014 or December 31, 2013 and had available borrowing capacity of $199,287 at September 30, 2014.

Letters of Credit

At September 30, 2014, the Company had outstanding letters of credit of approximately $713.

United Kingdom

A subsidiary of the Company has a working capital facility with NatWest Bank for its United Kingdom operations which includes an overdraft availability of £1,500 pounds sterling (approximately $2,432 at September 30, 2014). This credit facility supports the subsidiary’s working capital requirements and is collateralized by substantially all of the assets of its United Kingdom operations. The interest rate on this facility is the financial institution’s base rate plus 1.50%. Outstanding performance bonds reduce availability under this credit facility. The subsidiary of the Company had no outstanding borrowings under this credit facility as of September 30, 2014. There was approximately $31 and $60 in outstanding guarantees (as defined in the underlying agreement) at September 30, 2014 and December 31, 2013, respectively. This credit facility was renewed effective September 29, 2014 with no significant changes to the underlying terms or conditions in the facility.

The United Kingdom loan agreements contain certain financial covenants that require that subsidiary to maintain senior interest and cash flow coverage ratios. The subsidiary was in compliance with these financial covenants as of September 30, 2014. The subsidiary had available borrowing capacity of $2,401 at September 30, 2014.

10. DISCONTINUED OPERATIONS

The Company maintained current assets from discontinued operations of $14 and $149 as of September 30, 2014 and December 31, 2013, respectively. The Company also maintained current liabilities of $26 as of December 31, 2013. Sales from the discontinued businesses were not material to the three and nine months ended September 30, 2014 and 2013.

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11. EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014		2013
Numerator for basic and diluted earnings per common share -
Income available to common stockholders:
Income from continuing operations	$	9,119		$	9,793	$	19,616	$	22,001
(Loss) Income from discontinued operations		(3	)		—		11		14
Net income	$	9,116		$	9,793	$	19,627	$	22,015
Denominator:
Weighted average shares		10,239			10,182		10,220		10,171
Denominator for basic earnings per common share		10,239			10,182		10,220		10,171
Effect of dilutive securities:
Employee stock options		4			11		7		11
Other stock compensation plans		92			88		98		73
Dilutive potential common shares		96			99		105		84
Denominator for diluted earnings per common share - adjusted weighted average shares and assumed conversions		10,335			10,281		10,325		10,255
Basic earnings per common share:
Continuing operations	$	0.89		$	0.96	$	1.92	$	2.16
Discontinued operations		(0.00	)		—		0.00		0.00
Basic earnings per common share	$	0.89		$	0.96	$	1.92	$	2.16
Diluted earnings per common share:
Continuing operations	$	0.88		$	0.95	$	1.90	$	2.15
Discontinued operations		(0.00	)		—		0.00		0.00
Diluted earnings per common share	$	0.88		$	0.95	$	1.90	$	2.15
Dividends paid per common share	$	0.03		$	0.03	$	0.09	$	0.09

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12. STOCK-BASED COMPENSATION

The Company applies the provisions of FASB ASC 718, “Compensation – Stock Compensation,” to account for the Company’s share-based compensation. Share-based compensation cost is measured at the grant date based on the calculated fair value of the award and is recognized over the employees’ requisite service period. The Company recorded stock compensation expense of $604 and $437 for the three-month periods ended September 30, 2014 and 2013, respectively, related to restricted stock awards and performance unit awards. Stock compensation expense of $2,403 and $1,528 was recorded for the nine-month periods ended September 30, 2014 and 2013, respectively. As of September 30, 2014, unrecognized compensation expense for awards the Company expects to vest approximated $3,469. The Company will recognize this expense over the upcoming 3.4 year period through February 2018.

Shares issued as a result of vested stock-based compensation generally will be from previously issued shares which have been reacquired by the Company and held as Treasury shares or authorized but previously unissued common stock.

The excess income tax benefit realized for the tax deduction from stock-based compensation approximated $283 and $192 for the nine months ended September 30, 2014 and 2013, respectively. This excess income tax benefit is included in cash flows from financing activities in the Condensed Consolidated Statements of Cash Flows.

Stock Option Awards

A summary of the current year option activity as of September 30, 2014 is presented below.

						Weighted		Aggregate
				Weighted		Average		Intrinsic
				Average		Remaining		Value
				Exercise		Contractual		(Dollars in
	Shares			Price		Term		thousands)
Outstanding and Exercisable at January 1, 2014		18,750		$	10.64		1.3
Granted		—			—		—
Canceled		—			—		—
Exercised		(11,250	)		11.67		—
Outstanding and Exercisable at September 30, 2014		7,500		$	9.08		0.6	$	276

At September 30, 2014, common stock options outstanding and exercisable under the Company’s equity plans had option prices ranging from $8.97 to $9.29, with a weighted average exercise price of $9.08. At September 30, 2013, common stock options outstanding and exercisable under the Company’s equity plans had option prices ranging from $7.81 to $14.77, with a weighted average exercise price of $10.64 per share.

The total intrinsic value of stock options outstanding and exercisable at September 30, 2013 was $658.

The weighted average remaining contractual life of the stock options outstanding at September 30, 2014 and 2013 was 0.6 and 1.5 years, respectively.

There were no stock options exercised during the three-month period ended September 30, 2014. There were 11,250 stock options with a weighted average exercise price per share of $11.67 exercised during the nine-month period ended September 30, 2014. There were 3,750 stock options exercised during the three and nine-month periods ending September 30, 2013 with an average exercise price of $9.30.

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Restricted Stock Awards and Performance Unit Awards

Under the amended and restated 2006 Omnibus Plan, the Company grants eligible employees Restricted Stock and Performance Unit Awards. The forfeitable Restricted Stock Awards generally time-vest after a four year holding period, unless indicated otherwise by the underlying Restricted Stock Agreement. Performance Unit Awards are offered annually under separate three-year long-term incentive programs. Performance units are subject to forfeiture and will be converted into common stock of the Company based upon the Company’s performance relative to performance measures and conversion multiples as defined in the underlying program. If the Company’s estimate of the number of Performance Stock Awards expected to vest changes in a subsequent accounting period, cumulative compensation expense could increase or decrease. The change will be recognized in the current period for the vested shares and would change future expense over the remaining vesting period.

The following table summarizes the Restricted Stock Award and Performance Unit Award activity for the period ended September 30, 2014:

	Restricted Stock Units			Performance Stock Units			Weighted Average Grant Date Fair  Value
Outstanding at January 1, 2014		129,726			61,651		$	34.00
Granted		19,051			34,652			44.07
Vested		(36,302	)		(13,588	)		33.96
Adjustment for incentive awards expected to vest		—			(7,845	)		43.59
Canceled		—			(2,880	)		44.13
Outstanding at September 30, 2014		112,475			71,990		$	36.38

13. RETIREMENT PLANS

Retirement Plans

The Company has five retirement plans which cover its hourly and salaried employees in the United States: three defined benefit plans (one active / two frozen) and two defined contribution plans. Employees are eligible to participate in the appropriate plan based on employment classification. The Company’s funding to the defined benefit and defined contribution plans are governed by the Employee Retirement Income Security Act of 1974 (ERISA), applicable plan policy and investment guidelines. The Company’s policy is to contribute at least the minimum in accordance with the funding standards of ERISA.

The Company’s subsidiary, L.B. Foster Rail Technologies, Inc. (Rail Technologies), maintains two defined contribution plans for its employees in Canada, as well as a post-retirement benefit plan. In the United Kingdom, Rail Technologies maintains both a defined contribution plan and a defined benefit plan.

United States Defined Benefit Plans

Net periodic pension costs for the United States defined benefit pension plans for the three and nine-month periods ended September 30, 2014 and 2013 are as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Service cost	$	5		$	8		$	17		$	25
Interest cost		193			177			578			530
Expected return on plan assets		(242	)		(214	)		(726	)		(642	)
Recognized net actuarial loss		16			53			49			159
Net periodic pension (income) cost	$	(28	)	$	24		$	(82	)	$	72

The Company expects to contribute approximately $408 to its United States defined benefit plans in 2014. Contributions of approximately $300 were made during the nine months ended September 30, 2014.

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United Kingdom Defined Benefit Plans

Net periodic pension costs for the United Kingdom defined benefit pension plan for the three and nine-month periods ended September 30, 2014 and 2013 are as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Interest cost	$	97		$	85		$	297		$	255
Expected return on plan assets		(92	)		(73	)		(281	)		(219	)
Amortization of transition amount		(7	)		(12	)		(21	)		(36	)
Recognized net actuarial loss		49			57			149			171
Net periodic pension cost	$	47		$	57		$	144		$	171

United Kingdom regulations require trustees to adopt a prudent approach to funding required contributions to defined benefit pension plans. Employer contributions of $292 are anticipated to the United Kingdom L.B. Foster Rail Technologies, Inc. pension plan during 2014. For the nine months ended September 30, 2014, the Company contributed approximately $219 to the plan.

Defined Contribution Plans

The Company sponsors five defined contribution plans for hourly and salaried employees across our domestic and international facilities. The following table summarizes the expense associated with the contributions made to these plans.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
Salaried Plan	$	672	$	478	$	1,751	$	1,422
Union Plan		20		18		59		53
Montreal Plan		20		28		65		88
United Kingdom Plan		32		27		100		95
Burnaby Plan		32		34		107		111
	$	776	$	585	$	2,082	$	1,769

14. FAIR VALUE MEASUREMENTS

The Company determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s own assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below.

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The Company has an established process for determining fair value for its financial assets and liabilities, principally cash and cash equivalents and at times foreign currency exchange contracts. Fair value is based on quoted market prices, where available. If quoted market prices are not available, fair value is based on assumptions that use as inputs market-based parameters. The following sections describe the valuation methodologies used by the Company to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Where appropriate the description includes details of the key inputs to the valuations and any significant assumptions.

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Cash equivalents. Included within “Cash and cash equivalents” are investments in money market funds with various underlying securities all of which maintain AAA credit ratings. Also included within cash equivalents are our highly liquid investments in non-domestic bank term deposits. The Company uses quoted market prices to determine the fair value of these investments and they are classified in Level 1 of the fair value hierarchy. The carrying amounts approximate fair value because of the short maturity of the instruments.

The following assets and liabilities of the Company were measured at fair value on a recurring basis subject to the disclosure requirements of ASC Topic 820 at September 30, 2014 and December 31, 2013:

	Fair Value Measurements at Reporting Date Using								Fair Value Measurements at Reporting Date Using
	September 30, 2014		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		December 31, 2013		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Domestic money market funds	$	36,386	$	36,386	$	—	$	—	$	18,276	$	18,276	$	—	$	—
Non domestic bank term deposits		29,757		29,757		—		—		32,947		32,947		—		—
Total Assets	$	66,143	$	66,143	$	—	$	—	$	51,223	$	51,223	$	—	$	—

15. COMMITMENTS AND CONTINGENT LIABILITIES

Product Liability Claims

The Company is subject to product warranty claims that arise in the ordinary course of its business. For certain manufactured products, the Company maintains a product warranty accrual which is adjusted on a monthly basis as a percentage of cost of sales. The product warranty accrual is continually reviewed and periodically adjusted based on the identification or resolution of known individual product warranty claims. The following table sets forth the Company’s continuing operations product warranty accrual:

	Warranty Liability
Balance at December 31, 2013	$	7,483
Additions to warranty liability		5,758
Warranty liability utilized		(4,631	)
Balance at September 30, 2014	$	8,610

Included within the above table are concrete tie warranty reserves of approximately $7,576 and $6,462 as of September 30, 2014 and December 31, 2013, respectively. Increases to the warranty reserve relate to the Company’s standard warranty accrual which is based upon historical claims experience, as well as an incremental $608 reserve related to a transit project warranty issue, and a $4,000 charge related to the Union Pacific Railroad (UPRR) warranty claim recorded during the 2014 second quarter. The incremental adjustment to the transit project addresses a previously established reserve that is nearing completion. Reductions to the reserve balance primarily relate to warranty claims satisfied through the replacement of concrete ties during the nine-month period ended September 30, 2014.

UPRR Warranty Claim

In July 2011, the UPRR notified the Company and its subsidiary, CXT Incorporated (CXT), of a warranty claim under CXT’s 2005 supply contract relating to the sale of pre-stressed concrete railroad ties to the UPRR. The UPRR asserted that a significant percentage of concrete ties manufactured in 2006 through 2011 at CXT’s former Grand Island, NE facility failed to meet contract specifications, had workmanship defects, and were cracking and failing prematurely. Of the 3.0 million ties manufactured between 1999 and 2011 from the Grand Island, NE facility, approximately 1.6 million relate to concrete ties sold to the UPRR during the period of their claim.

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During 2012, as a result of testing and analysis conducted, including with UPRR, on concrete ties manufactured at its former Grand Island, NE facility, the Company reached an agreement with UPRR to amend the 2005 supply contract (2012 amended supply agreement) and, among other matters, reverted to a previously used warranty policy of a 15 year warranty with a 1:1 replacement ratio for all ties sold to UPRR (during most of the period of UPRR’s original claim the warranty policy was a 5 year warranty with a 1.5:1 replacement ratio for any defective ties) and established a process to identify, prioritize, and replace ties that meet the criteria for replacement.

The Company provided warranty replacement ties to UPRR during 2013 for ties which UPRR removed and asserted qualified for warranty replacement. However, the Company believed a significant number of ties replaced by UPRR did not meet the warranty replacement criteria and so informed UPRR. UPRR has claimed that the Company is in breach of the 2012 amended supply agreement for various reasons. The Company has denied UPRR’s claim that it is in material breach of the 2012 amended supply agreement.

As of September 30, 2014, the Company and the UPRR have not been able to reconcile the disagreement related to the 2013 warranty replacement activity. The disagreement includes approximately 170,000 ties. The Company and the UPRR have also not been able to reconcile the 2014 warranty replacement activity during the current year.

The Company continues to work with UPRR to identify, replace, and reconcile defective ties related to the warranty claim in accordance with the 2012 amended supply agreement. The Company and UPRR met during the third quarter of 2014 to evaluate each other’s position in an effort to work towards agreement on the unreconciled 2013 and 2014 replacement activity as well as the standards and practices to be implemented for future replacement activity and warranty tie replacement. No agreement was reached and the Company continues to endeavor to reconcile the replaced warranty ties with UPRR.

In the event that the Company and UPRR do not reach agreement regarding the 2013 and 2014 replacement activity and future activity and is found to be in material breach of the 2012 amended supply agreement, the UPRR may seek damages from the Company and/or terminate the agreement.

During 2012, the Company recorded pre-tax warranty charges of $22,000 in “Cost of Goods Sold” within its Rail Products segment. The accrual was based on the Company’s estimate of the number of defective concrete ties that will ultimately require replacement during the applicable warranty periods at an average cost of fifty dollars per concrete tie. Subsequently, in the second quarter of 2014, the Company increased its accrual by an additional $4,000 based on recent estimates of ties to be replaced. The concrete tie warranty reserve is the best estimate of the expected value of defective ties that will be replaced as a result of observation and analysis of ties in track. While the Company believes this is a reasonable estimate of these potential warranty claims, these estimates could change due to the receipt of new information and future events. The Company will continue to assess the adequacy of its product warranty reserve as additional information becomes available. There can be no assurance at this point that future potential costs pertaining to these claims or other potential future claims will not have a material impact on the Company’s financial condition or results of operations.

Environmental and Legal Proceedings

The Company is subject to national, state, foreign, provincial, and/or local laws and regulations relating to the protection of the environment. The Company’s efforts to comply with environmental regulations may have an adverse effect on its future earnings. In the opinion of management, compliance with the present environmental protection laws will not have a material adverse effect on the financial condition, results of operations, cash flows, competitive position, or capital expenditures of the Company.

The Company is also subject to legal proceedings and claims that arise in the ordinary course of its business. In the opinion of management, the amount of ultimate liability with respect to these actions will not materially affect the financial condition or liquidity of the Company. The resolution, in any reporting period, of one or more of these matters could have a material effect on the Company’s results of operations for that period.

As of September 30, 2014 and December 31, 2013, the Company maintained environmental and litigation reserves approximating $3,305 and $2,192, respectively.

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16. INCOME TAXES

The Company’s effective income tax rate from continuing operations for the three and nine months ended September 30, 2014 was 34.2% and 33.3%, respectively and 30.2% and 32.4% for the three and nine months ended September 30, 2013, respectively. The Company’s effective income tax rate for the three and nine months ended September 30, 2014 differed from the federal statutory rate of 35% due to state income taxes, U.S. domestic production activities deductions and operations in foreign jurisdictions with lower statutory tax rates.

17. SUBSEQUENT EVENTS

Management evaluated all activity of the Company and concluded that no subsequent events have occurred that would require recognition in the Condensed Consolidated Financial Statements or disclosure in the Notes to the Condensed Consolidated Financial Statements.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

(Dollars in thousands, except share data)

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Many of the forward-looking statements are located in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Sentences containing words such as “believe,” “intend,” “may,” “expect,” “could,” “should,” “anticipate,” “plan,” “estimate,” “predict,” “project,” or their negatives, or other similar expressions generally should be considered forward-looking statements. Forward-looking statements in this Quarterly Report on Form 10-Q may concern, among other things, the Company’s expectations regarding our strategy, goals, projections and plans regarding our financial position, liquidity and capital resources, the outcome of litigation and product warranty claims, results of operations, decisions regarding our strategic growth initiatives, market position, and product development, all of which are based on current estimates that involve inherent risks and uncertainties. The Company cautions readers that various factors could cause the actual results of the Company to differ materially from those indicated by forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties related to: general business conditions, the risk of doing business in international markets, our ability to effectuate our strategy including evaluation of potential opportunities such as strategic acquisitions, joint ventures, and other initiatives, and our ability to effectively integrate new businesses and realize anticipated benefits, a decrease in freight or passenger rail traffic, a lack of state or federal funding for new infrastructure projects, the timeliness and availability of material from major suppliers, labor disputes, the impact of competition, variances in current accounting estimates and their ultimate outcomes, the seasonality of the Company’s business, the adequacy of internal and external sources of funds to meet financing needs, the Company’s ability to curb its working capital requirements, domestic and international income taxes, foreign currency fluctuations, inflation, the impact of new regulations including regarding conflict minerals, the ultimate number of concrete ties that will have to be replaced pursuant to product warranty claims, an overall resolution of the related contract claims, risks inherent in litigation, and domestic and foreign governmental regulations. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. The risks and uncertainties that may affect the operations, performance, and results of the Company’s business and forward-looking statements include, but are not limited to, those set forth under Item 1A, “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2013 and our other periodic filings with the Securities and Exchange Commission.

The forward looking statements in this report are made as of the date of this report and we assume no obligation to update or revise any forward looking statement, whether as a result of new information, future developments, or otherwise, except as required by securities laws.

General Overview

L.B. Foster Company (Company) is a leading manufacturer, fabricator, and distributor of products and services for rail, construction, energy, and utility markets. The Company is comprised of three business segments: Rail Products, Construction Products, and Tubular Products.

The following discussion and analysis of financial condition and results of operations relates only to our continuing operations. More information regarding the results of discontinued operations can be found in Note 10 to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

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Quarter-to-date Results of Continuing Operations

	Three Months Ended September 30,						Percent of Total Net Sales Three Months Ended September  30,						Percent Increase/ (Decrease)
	2014			2013			2014			2013			2014 vs. 2013
Net Sales:
Rail Products	$	102,105		$	105,552			60.9	%		65.1	%		(3.3	)%
Construction Products		49,907			49,320			29.7			30.4			1.2
Tubular Products		15,785			7,376			9.4			4.5			114.0
Total net sales	$	167,797		$	162,248			100.0	%		100.0	%		3.4	%
	Three Months Ended September 30,						Gross Profit Percentage Three Months Ended September 30,						Percent Increase/ (Decrease)
	2014			2013			2014			2013			2014 vs. 2013
Gross Profit:
Rail Products	$	23,358		$	21,647			22.9	%		20.5	%		7.9	%
Construction Products		8,421			7,614			16.9			15.4			10.6
Tubular Products		3,220			1,608			20.4			21.8			100.2
LIFO income		302			553			0.2			0.3			(45.4	)
Other		(142	)		(117	)		(0.1	)		(0.1	)		21.4
Total gross profit	$	35,159		$	31,305			21.0	%		19.3	%		12.3	%
	Three Months Ended September 30,						Percent of Total Net Sales Three Months Ended September 30,						Percent Increase/ (Decrease)
	2014			2013			2014			2013			2014 vs. 2013
Expenses:
Selling and administrative expenses	$	20,644		$	17,547			12.3	%		10.8	%		17.6	%
Amortization expense		1,191			701			0.7			0.4			69.9
Interest expense		126			118			0.1			0.1			6.8
Interest income		(140	)		(149	)		(0.1	)		(0.1	)		(6.0	)
Equity in income of nonconsolidated investments		(477	)		(296	)		(0.3	)		(0.2	)		61.1
Other income		(47	)		(638	)		—			(0.4	)		(92.6	)
Total expenses	$	21,297		$	17,283			12.7	%		10.7	%		23.2	%
Income from continuing operations before income taxes	$	13,862		$	14,022			8.3	%		8.6	%		(1.1	)%
Income tax expense		4,743			4,229			2.8			2.6			12.2
Income from continuing operations	$	9,119		$	9,793			5.5	%		6.0	%		(6.9	)%

23

Third Quarter 2014 Compared to Third Quarter 2013 – Company Analysis

Net sales of $167,797 for the quarter ended September 30, 2014 increased by $5,549, or 3.4%, compared to the prior year quarter. Included within the third quarter net sales are acquisition revenues from Ball Winch and Carr Concrete. The consolidated change was attributable to increases of 114.0% and 1.2% in Tubular Products and Construction Products segment sales, respectively, partially offset by a reduction of 3.3% in Rail Products segment sales.

Gross profit margin for the quarter ended September 30, 2014 was 21.0%, or an increase of 166 basis points from the prior year period. The increased profitability was primarily driven by margin improvement within the Rail Products segment, and to a lesser extent the Construction Products segment.

Selling and administrative expenses increased by $3,097, or 17.6%, over the prior year primarily due to personnel-related costs as well as third party consulting and acquisition costs. Included within consulting costs are services related to the preparation for and identification of a new enterprise resource planning system and approximately $560 of acquisition-related costs for the three months ended September 30, 2014. Increased selling and administrative costs also relate to acquired businesses that were not included in the 2013 results.

The Company’s effective income tax rate from continuing operations in the 2014 third quarter was 34.2%, compared to 30.2% in the prior year quarter. The Company’s effective income tax rate for the quarter ended September 30, 2014 differed from the federal statutory rate of 35% due to state income taxes, U.S. domestic production activities deductions and operations in foreign jurisdictions with lower statutory tax rates. The increase in effective tax rate compared to the prior year quarter was primarily due to the recognition of previously unrecognized uncertain state tax positions during the prior year quarter.

Net income from continuing operations for the third quarter of 2014 was $9,119, or $0.88 per diluted share, compared to net income from continuing operations of $9,793, or $0.95 per diluted share, in the prior year quarter.

Results of Continuing Operations – Segment Analysis

Rail Products

	Three Months Ended						(Decrease)			Percent
	September 30,						/Increase			(Decrease)/Increase
	2014			2013			2014 vs. 2013			2014 vs. 2013
Net Sales	$	102,105		$	105,552		$	(3,447	)		(3.3	)%
Gross Profit	$	23,358		$	21,647		$	1,711			7.9	%
Gross Profit Percentage		22.9	%		20.5	%		2.4	%		11.7	%

Third Quarter 2014 Compared to Third Quarter 2013

Rail Products segment sales decreased $3,447, or 3.3%, compared to the prior year period. The sales decline within the segment was primarily attributable to a combined 16.6%, reduction in Rail Distribution and Transit product sales. The declines in Rail Distribution were attributable to operational issues that have been corrected and the Transit decline was a result of the Honolulu transit project that is nearing completion. Partially offsetting these declines were increases of 19.0% and 14.2% increases in Rail Technology and CXT concrete tie sales, respectively.

Compared to the prior year quarter, the Rail Products segment generated an increase in new orders of 41.2%.

The Rail Products segment experienced an increase in gross profit margins of 236 basis points compared to the prior year period. The increased profit primarily relates to favorable product mix, and to a lesser extent, favorable cost developments on long-term projects within the Transit division.

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Construction Products

	Three Months Ended									Percent
	September 30,						Increase			Increase
	2014			2013			2014 vs. 2013			2014 vs. 2013
Net Sales	$	49,907		$	49,320		$	587			1.2	%
Gross Profit	$	8,421		$	7,614		$	807			10.6	%
Gross Profit Percentage		16.9	%		15.4	%		1.5	%		9.7	%

Third Quarter 2014 Compared to Third Quarter 2013

Construction Products segment sales increased $587, or 1.2%, compared to the prior year period. The increase relates to revenues from the July 2014 acquisition of Carr Concrete and increased Fabricated Bridge Products sales which were largely offset by reductions within the Piling Products business due to insufficient product supply as well as declines in the concrete buildings businesses (excluding the Carr Concrete acquisition).

Compared to the prior year quarter, the Construction Products segment experienced a reduction in new orders of 34.0%. New orders from the recently acquired Carr Concrete business represented 11.0% of current quarter orders. Although new orders contracted during the quarter, backlog levels exceeded the prior year by 6.2%.

The gross profit percentage increased by 145 basis points. With the exception of a 100 basis point decline in the Piling business, the margin increases were due to greater profitability within all of the businesses as well as accretive margins related to the July 2014 Carr Concrete acquisition.

Tubular Products

	Three Months Ended						Increase			Percent
	September 30,						/(Decrease)			Increase/(Decrease)
	2014			2013			2014 vs. 2013			2014 vs. 2013
Net Sales	$	15,785		$	7,376		$	8,409			114.0	%
Gross Profit	$	3,220		$	1,608		$	1,612			100.2	%
Gross Profit Percentage		20.4	%		21.8	%		(1.4	)%		(6.4	)%

Third Quarter 2014 Compared to Third Quarter 2013

Tubular Products segment sales increased $8,409, or 114.0%, compared to the prior year period. This increase relates primarily to the Coated Products business. The favorable Coated sales were driven by organic sales increases of 174.8% as well as sales from our November 2013 acquisition of Ball Winch. Tubular Products gross margins declined due principally to lower Coated margins, which is reflective of cost overruns on a project that was substantially completed by September 30, 2014.

Compared to the prior year quarter, the Tubular Products segment experienced an increase in new orders of 43.9%. Included in the increase are orders from the acquisition of Ball Winch which represented 21.6% of current quarter orders.

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Year-to-date Results of Continuing Operations

	Nine Months Ended September 30,						Percent of Total Net Sales Nine Months Ended September 30,						Percent Increase/(Decrease)
	2014			2013			2014			2013			2014 vs. 2013
Net Sales:
Rail Products	$	283,085		$	277,843			63.5	%		62.9	%		1.9	%
Construction Products		119,100			129,828			26.7			29.4			(8.3	)
Tubular Products		43,858			33,834			9.8			7.7			29.6
Total net sales	$	446,043		$	441,505			100.0	%		100.0	%		1.0	%
	Nine Months Ended September 30,						Gross Profit Percentage Nine Months Ended September 30,						Percent Increase/(Decrease)
	2014			2013			2014			2013			2014 vs. 2013
Gross Profit:
Rail Products	$	58,315		$	56,146			20.6	%		20.2	%		3.9	%
Construction Products		21,826			19,251			18.3			14.8			13.4
Tubular Products		9,741			10,060			22.2			29.7			(3.2	)
LIFO income		500			299			0.1			0.1			67.2
Other		(396	)		(428	)		(0.1	)		(0.1	)		(7.5	)
Total gross profit	$	89,986		$	85,328			20.2	%		19.3	%		5.5	%
	Nine Months Ended September 30,						Percent of Total Net Sales Nine Months Ended September 30,						Percent Increase/(Decrease)
	2014			2013			2014			2013			2014 vs. 2013
Expenses:
Selling and administrative expenses	$	58,268		$	52,628			13.1	%		11.9	%		10.7	%
Amortization expense		3,504			2,102			0.8			0.5			66.7
Interest expense		375			376			0.1			0.1			(0.3	)
Interest income		(431	)		(494	)		(0.1	)		(0.1	)		(12.8	)
Equity in income of nonconsolidated investments		(823	)		(892	)		(0.2	)		(0.2	)		(7.7	)
Other income		(297	)		(953	)		(0.1	)		(0.2	)		(68.8	)
Total expenses	$	60,596		$	52,767			13.6	%		12.0	%		14.8	%
Income from continuing operations before income taxes	$	29,390		$	32,561			6.6	%		7.4	%		(9.7	)%
Income tax expense		9,774			10,560			2.2			2.4			(7.4	)
Income from continuing operations	$	19,616		$	22,001			4.4	%		5.0	%		(10.8	)%

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First Nine Months of 2014 Compared to First Nine Months of 2013 – Company Analysis

Net sales of $446,043 for the nine months ended September 30, 2014 increased by $4,538, compared to the prior year period. Included within the September 30, 2014 sales are acquisition related revenues from Ball Winch and Carr Concrete. The sales increase was attributable to increases of 29.6% and 1.9% in Tubular Products and Rail Products segment sales, respectively, which were partially offset by a decrease of 8.3% in Construction Products segment sales

Gross profit margin for the nine months ended September 30, 2014 was 20.2%, or 85 basis points higher than the prior year. The margin increase was diluted due to a second quarter 2014 warranty charge of $4,608 within the Rail Products segment. Excluding the impact of the charge, the increase was due to improvements within the Rail and Construction Products segments.

Selling and administrative expenses increased by $5,640, or 10.7%, over the prior year period. The cost increases for the nine months ended September 30, 2014 were primarily attributable to personnel-related costs as well as third party consulting and acquisition costs. The consulting costs related to the preparation for and identification of a new enterprise resource planning system and approximately $680 of acquisition-related costs for the nine months ended September 30, 2014. Increased selling and administrative costs also relate to acquired businesses that were not included in the 2013 results.

The Company’s effective income tax rate from continuing operations for the first nine months of 2014 was 33.3%, compared to 32.4% in the prior year period. The Company’s effective income tax rate for the nine months ended September 30, 2014 differed from the federal statutory rate of 35% primarily due to the recognition of previously unrecognized state tax benefits. The increase in effective tax rate compared to the prior year period was due to the recognition of uncertain state tax positions during the prior year.

Net income from continuing operations for the first nine months of 2014 was $19,616, or $1.90 per diluted share, which compares to net income from continuing operations for the 2013 period of $22,001, or $2.15 per diluted share.

Results of Continuing Operations – Segment Analysis

Rail Products

	Nine Months Ended									Percent
	September 30,						Increase			Increase
	2014			2013			2014 vs. 2013			2014 vs. 2013
Net Sales	$	283,085		$	277,843		$	5,242			1.9	%
Gross Profit	$	58,315		$	56,146		$	2,169			3.9	%
Gross Profit Percentage		20.6	%		20.2	%		0.4	%		2.0	%

First Nine Months of 2014 Compared to First Nine Months of 2013

Rail Products segment sales increased $5,242, or 1.9%, compared to the prior year period. Rail Technologies increased by 22.3%, Allegheny Rail Products increased by 25.4%, and CXT concrete ties increased by 15.8%. Partially offsetting these increases was a 13.9% combined reduction from Rail Distribution, Transit and Trackwork sales.

During the nine-month period ended September 30, 2014, the Rail Products segment generated an increase in new orders of 21.6% compared to the prior year period.

The gross profit margin increased by 39 basis points over the preceding year period. During the second quarter of 2014, the CXT concrete railroad tie business incurred a $4,608 warranty charge as further described in Note 15. With the exception of the CXT concrete tie business, profit margins across all Rail Product businesses experienced growth. Contributing to the 2014 margins were favorable sales mix within Rail Products businesses, and to a lesser extent, favorable cost developments on long-term projects within the Transit Products business.

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Construction Products

	Nine Months Ended						(Decrease)			Percent
	September 30,						/Increase			(Decrease)/Increase
	2014			2013			2014 vs. 2013			2014 vs. 2013
Net Sales	$	119,100		$	129,828		$	(10,728	)		(8.3	)%
Gross Profit	$	21,826		$	19,251		$	2,575			13.4	%
Gross Profit Percentage		18.3	%		14.8	%		3.5	%		23.6	%

First Nine Months of 2014 Compared to First Nine Months of 2013

Construction Products segment sales decreased $10,728, or 8.3%, compared to the prior year period. The reduction relates to a 23.1% and 11.3% decline in Piling and CXT concrete buildings sales, respectively. The Piling Products decline is partially related to a shortage of product in the current year. Partially offsetting these declines was a 91.3% increase in Fabricated Bridge Products sales as well as sales from the July 2014 acquisition of Carr Concrete.

During the nine-month period ended September 30, 2014, the Construction Products segment new orders remained flat compared to the prior year. New orders from the recently acquired Carr Concrete business represented 2.9% of current year orders.

The gross profit percentage increased by 349 basis points due to gross margin improvements in all Construction Products’ businesses as well as favorable product mix.

Tubular Products

	Nine Months Ended						Increase			Percent
	September 30,						/(Decrease)			Increase/(Decrease)
	2014			2013			2014 vs. 2013			2014 vs. 2013
Net Sales	$	43,858		$	33,834		$	10,024			29.6	%
Gross Profit	$	9,741		$	10,060		$	(319	)		(3.2	)%
Gross Profit Percentage		22.2	%		29.7	%		(7.5	)%		(25.3	)%

First Nine Months of 2014 Compared to First Nine Months of 2013

Tubular Products segment sales increased $10,024, or 29.6%, compared to the prior year period. Approximately 80% of the increase relates to greater Coated product sales as a result of our November 2013 acquisition of Ball Winch which was enhanced by a 9.7% increase excluding the acquired business. Tubular Products gross margins were unfavorably impacted by cost overruns on a Coated project that was essentially completed by September 30, 2014.

During the nine-month period ended September 30, 2014, the Tubular Products segment generated an increase in new orders of 64.5% compared to the prior year. Included in the increase are orders from the acquisition of Ball Winch which represented 20.0% of current year orders.

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Other

Segment Backlog

Total Company backlog from continuing operations at September 30, 2014 was approximately $223,230 and is summarized by business segment in the following table for the periods indicated:

	Backlog
	September 30,		December 31,		September 30,
	2014		2013		2013
Rail Products	$	127,768	$	121,853	$	110,910
Construction Products		88,250		53,483		83,102
Tubular Products		7,212		7,775		3,529
Total Backlog from Continuing Operations	$	223,230	$	183,111	$	197,541

Warranty

As of September 30, 2014, the Company maintained a total product warranty reserve of approximately $8,610 for its estimate of all potential product warranty claims. Of this total, $7,576 reflects the current estimate of the Company’s exposure for potential product warranty claims related to concrete tie production. While the Company believes this is a reasonable estimate of its potential contingencies related to identified concrete tie warranty matters, the Company may incur future charges associated with new customer claims or further development of information for existing customer claims. Thus, there can be no assurance that future potential costs pertaining to warranty claims will not have a material impact on the Company’s results of operations and financial condition.

As of September 30, 2014, the Company and the Union Pacific Railroad (UPRR) have been unable to reconcile the disagreement related to the 2013 warranty replacement activity. The disagreement includes approximately 170,000 ties. The Company and the UPRR have also been unable to reconcile all 2014 warranty replacement activity during the current year.

The Company continues to work with UPRR to identify, replace, and reconcile defective ties related to the warranty claim in accordance with the 2012 amended supply agreement. The Company and UPRR met during the third quarter of 2014 to evaluate each other’s position in an effort to work towards agreement on the unreconciled 2013 and 2014 replacement activity. The Company and the UPRR also discussed the standards and practices to be implemented for future replacement activity. No agreement was reached and the Company continues to endeavor to reconcile the replaced warranty ties with the UPRR.

In the event that the Company and UPRR do not reach agreement regarding the 2013 and 2014 replacement activity and future activity and is found to be in material breach of the 2012 amended supply agreement, UPRR may seek damages from the Company and/or terminate the agreement. There can be no assurance at this point that future potential costs pertaining to these claims or other potential future claims will not have a material impact on the Company’s financial condition or results of operations. See Note 15 of the Notes to Condensed Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for additional information.

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Liquidity and Capital Resources

Total debt related to capital lease obligations was $374 and $56 as of September 30, 2014 and December 31, 2013, respectively.

Our need for liquidity relates primarily to seasonal working capital requirements for continuing operations, capital expenditures, joint venture capital obligations, strategic investments or acquisitions, debt service obligations, share repurchases, and dividends.

The following table summarizes the year-to-date impact of these items:

	September 30,
	2014			2013
Liquidity needs:
Working capital and other assets and liabilities	$	19,460		$	(27,021	)
Capital expenditures		(11,593	)		(5,648	)
Capital contributions to equity method investments		(82	)		—
Other long-term debt repayments		(78	)		(14	)
Financing costs paid		(473	)		—
Treasury stock acquisitions		(918	)		(633	)
Dividends paid to common shareholders		(931	)		(931	)
Acquisitions		(12,786	)		—
Cash interest paid		(267	)		(257	)
Net liquidity needs		(7,668	)		(34,504	)
Liquidity sources:
Internally generated cash flows before interest paid		29,801			29,187
Dividends from LB Pipe & Coupling Products, LLC		630			558
Proceeds from asset sales		184			—
Equity transactions		414			227
Other long-term debt proceeds		316			—
Foreign exchange effects		(1,898	)		(1,192	)
Net liquidity sources		29,447			28,780
Discontinued operations		114			257
Net Change in Cash	$	21,893		$	(5,467	)

Cash Flow from Continuing Operating Activities

During the nine months ended September 2014, cash flows from continuing operations provided $49,624, an increase of $47,157, compared to the 2013 period. For the nine months ended September 30, 2014, income, adjustments to income from continuing operating activities, and dividends from the LB Pipe JV provided $30,164 compared to $29,488 in the 2013 period. Working capital and other assets and liabilities provided $19,460 in the current period compared to use of $27,021 in the prior year period. Enhanced working capital management relative to collections, advanced billings on long-term projects, and timing of tax payments have led to the significant increase in cash flows from continuing operations for the period ended September 30, 2014.

The Company’s calculation for days sales outstanding at September 30, 2014 was 48 days compared to 52 days at December 31, 2013 and we believe our receivable portfolio is strong.

30

Cash Flow from Continuing Investing Activities

Capital expenditures were $11,593 for the first nine months of 2014 compared to $5,648 for the same 2013 period. Current period expenditures related to improvements to our Birmingham, AL coated products facility, equipment costs to expand into adjacent markets within our bridge products and Ball Winch coated products businesses, and general plant and yard improvements. During the prior year, capital expenditures related to improvements to our machinery and equipment across each segment with no individually significant additions. We anticipate total capital spending in 2014 will range between $16,000 and $19,000 and will be funded by cash flow from continuing operations.

As of September 30, 2014, cash outflows related to acquisitions were $12,786. A cash payment of $12,291 was made on July 7, 2014 for the acquisition of Carr Concrete and a post closing working capital payment of $495 was made in the first quarter of 2014 related to our acquisition of Ball Winch.

Cash Flow from Financing Activities

During the nine-month periods ended September 30, 2014 and 2013, we did not purchase any common shares of the Company under our existing share repurchase authorization. However, we withheld 20,301 and 14,417 shares to pay employee withholding taxes in connection with the vesting of restricted stock awards for approximately $918 and $633 for the periods ended September 30, 2014 and 2013, respectively. Cash outflows related to dividends were $931 during each period. Included in financing activities for the period ended September 30, 2014 were costs of $473 related to the amended credit agreement and funding for equipment debt of $316.

Cash Flow from Discontinued Operations

For the nine-month periods ended September 30, 2014 and 2013, cash flows from discontinued operations provided $114 and $257 from operating activities, respectively.

Financial Condition

As of September 30, 2014, we had $86,516 in cash and cash equivalents and credit facilities with $201,688 of availability while carrying only $374 in total debt. We believe this liquidity will provide the flexibility to take advantage of both organic and external investment opportunities.

Included within cash and cash equivalents are money market funds with various underlying securities. Our priority continues to be short-term maturities and the preservation of our principal balances. Approximately $50,791 of our cash and cash equivalents was held in non-domestic bank accounts, and is not available to fund domestic operations unless repatriated. It is management’s intent to indefinitely reinvest such funds outside of the United States, as the Company would need to accrue and pay additional income and withholding taxes if these funds were repatriated.

Borrowings under the Amended Credit Agreement will bear interest at rates based upon either the base rate or Euro-rate plus applicable margins. Applicable margins are dictated by the ratio of the Company’s indebtedness less cash on hand to the Company’s consolidated EBITDA, as defined in the underlying Amended Credit Agreement. The base rate is the highest of (a) PNC Bank’s prime rate, (b) the Federal Funds Rate plus 0.50% or (c) the daily Euro-rate (as defined in the Amended Credit Agreement) plus 1.00%. The base rate and Euro-rate spreads range from 0.00% to 1.00% and 1.00% to 2.00%, respectively.

The Amended Credit Agreement includes two financial covenants: (a) Leverage Ratio, defined as the Company’s indebtedness less cash on hand, in excess of $15,000, divided by the Company’s consolidated EBITDA, which must not exceed 3.25 to 1.00 and (b) Minimum Interest Coverage, defined as consolidated EBITDA less capital expenditures divided by consolidated interest expense, which must be no less than 3.00 to 1.00.

The Amended Credit Agreement permits the Company to pay dividends, distributions, and make redemptions with respect to its stock provided no event of default or potential default (as defined in the Amended Credit Agreement) has occurred prior to or after giving effect to the dividend, distribution, or redemption. Dividends, distributions, and redemptions are capped at $25,000 per year when funds are drawn on the facility. If no drawings on the facility exist, dividends, distributions, and redemptions in excess of $25,000 per year are subjected to a limitation of $75,000 in the aggregate. The $75,000 aggregate limitation also permits certain loans, investments, and acquisitions.

Other restrictions exist at all times including, but not limited to, limitation of the Company’s sale of assets, other indebtedness incurred by either the borrowers or the non-borrower subsidiaries of the Company, guarantees, and liens.

31

As of September 30, 2014, the Company was in compliance with the Amended Credit Agreement’s covenants.

Critical Accounting Policies

The Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States. When more than one accounting principle, or method of its application, is generally accepted, management selects the principle or method that is appropriate in the Company’s specific circumstances. Application of these accounting principles requires management to make estimates about the future resolution of existing uncertainties. As a result, actual results could differ from these estimates. In preparing these financial statements, management has made its best estimates and judgments of the amounts and disclosures included in the financial statements giving due regard to materiality. There have been no material changes in the Company’s critical accounting policies since December 31, 2013. A summary of the Company’s critical accounting policies and estimates is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

Off-Balance Sheet Arrangements

The Company’s off-balance sheet arrangements include operating leases, purchase obligations, and standby letters of credit. A schedule of the Company’s required payments under financial instruments and other commitments as of December 31, 2013 is included in the “Liquidity and Capital Resources” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. These arrangements provide the Company with increased flexibility relative to the utilization and investment of cash resources. There were no material changes to these arrangements during the nine-month period ended September 30, 2014.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Interest Rate Risk

The Company does not purchase or hold any derivative financial instruments for trading purposes.

At contract inception, the Company designates its derivative instruments as hedges. The Company recognizes all derivative instruments on the balance sheet at fair value. Fluctuations in the fair values of derivative instruments designated as cash flow hedges are recorded in accumulated other comprehensive income and reclassified into earnings within other income as the underlying hedged items affect earnings. To the extent that a change in a derivative does not perfectly offset the change in value of the interest rate being hedged, the ineffective portion is recognized in earnings immediately.

Foreign Currency Exchange Rate Risk

The Company is subject to exposures to changes in foreign currency exchange rates. The Company manages its exposure to changes in foreign currency exchange rates on firm sale and purchase commitments by entering into foreign currency forward contracts. The Company’s risk management objective is to reduce its exposure to the effects of changes in exchange rates on these transactions over the duration of the transactions. The Company did not engage in foreign currency hedging transactions during the nine-month period ended September 30, 2014.

Item 4. Controls and Procedures

a) L.B. Foster Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities and Exchange Act of 1934, as amended) as of September 30, 2014. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective to timely alert them to material information relating to the Company (including its consolidated subsidiaries) required to be included in the Company’s periodic Securities and Exchange Commission filings.

b) There have been no changes in the Company’s internal controls over financial reporting that occurred in the period covered by this report that have materially affected or are likely to materially affect the Company’s internal controls over financial reporting.

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PART II. OTHER INFORMATION

(Dollars in thousands, except share data)

Item 1. Legal Proceedings

See Note 15, “Commitments and Contingent Liabilities,” to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

Item 1A. Risk Factors

In addition to the risk factors and other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the SEC on February 27, 2014, as well as those risk factors included in our Quarterly Reports on Form 10-Q filed since that date, which could materially affect our business, financial condition, financial results, or future performance. The risks described in our Annual Report on Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known or that we currently deem to be immaterial may also materially affect our business, financial condition, and/or results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The Company’s purchases of equity securities for the three-month period ended September 30, 2014 were as follows:

	Total number of shares purchased (1)		Average price paid per share		Total number of  shares purchased as part of publicly announced plans or programs (2)		Approximate dollar value of shares that may yet be purchased under the plans or programs (in thousands)
July 1, 2014 - July 31, 2014		—	$	—		—	$	15,000
August 1, 2014 - August 31, 2014		—		—		—		15,000
September 1, 2014 - September 30, 2014		—		—		—		15,000
Total		—	$	—		—	$	15,000

(1) Reflects shares withheld by the Company to pay taxes upon vesting of restricted stock

(2) On December 4, 2013, the Board of Directors authorized the repurchase of up to $15,000 of the Company’s common shares until December 31, 2016. This authorization became effective January 1, 2014.

While we did not purchase any common shares of the Company during the nine-month period ended September 30, 2014 under our existing share repurchase authorization, we did withhold 20,301 shares for approximately $918 from employees to pay their withholding taxes in connection with the vesting of restricted stock awards.

Item 4. Mine Safety Disclosures

This item is not applicable to the Company.

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Item 6. Exhibits

All exhibits are incorporated herein by reference:

10.7	$200,000,000 Amended and Restated Credit Agreement dated September 23, 2014, between Registrant and PNC Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A., and Citizens Bank of Pennsylvania, incorporated by reference to Exhibit 10.0 to the Company’s Current Report on Form 8-K, File No. 0-10436, filed on September 26, 2014.
*31.1	Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2	Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
*32.0	Certification of Chief Executive Officer and Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002.
*101.INS	XBRL Instance Document.
*101.SCH	XBRL Taxonomy Extension Schema Document.
*101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
*101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
*101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

* Exhibits marked with an asterisk are filed herewith.

34

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	L.B. FOSTER COMPANY (Registrant)
Date: November 4, 2014	By: /s/ David J. Russo
	David J. Russo
	Senior Vice President, Chief Financial Officer and Treasurer (Duly Authorized Officer of Registrant)

35

Index to Exhibits

All exhibits are incorporated herein by reference:

Exhibit Number	Description
10.7	$200,000,000 Amended and Restated Credit Agreement dated September 23, 2014, between Registrant and PNC Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A., and Citizens Bank of Pennsylvania, incorporated by reference to Exhibit 10.0 to the Company’s Current Report on Form 8-K, File No. 0-10436, filed on September 26, 2014.
*31.1	Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2	Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
*32.0	Certification of Chief Executive Officer and Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002.
*101.INS	XBRL Instance Document.
*101.SCH	XBRL Taxonomy Extension Schema Document.
*101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
*101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
*101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

* Exhibits marked with an asterisk are filed herewith.

36

EX-31.1

Exhibit 31.1

Certification under Section 302 of the

Sarbanes-Oxley Act of 2002

I, Robert P. Bauer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of L.B. Foster Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 4, 2014	/s/ Robert P. Bauer
	Name: Robert P. Bauer
	Title: President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification under Section 302 of the

Sarbanes-Oxley Act of 2002

I, David J. Russo, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of L.B. Foster Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 4, 2014	/s/ David J. Russo
	Name: David J. Russo
	Title: Senior Vice President, Chief Financial Officer and Treasurer

EX-32.0

Exhibit 32.0

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of L.B. Foster Company (the “Company”) on Form 10-Q for the period ended September 30, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certify pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 4, 2014	/s/ Robert P. Bauer
	Name: Robert P. Bauer
	Title: President and Chief Executive Officer

Date: November 4, 2014	/s/ David J. Russo
	Name: David J. Russo
	Title: Senior Vice President,
	Chief Financial Officer and Treasurer

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Commitments and Contingent Liabilites (Tables)

9 Months Ended

Sep. 30, 2014

Commitments and Contingent Liabilities [Abstract]

Schedule of Product Warranty Liability [Table Text Block]

		Warranty Liability
Balance at December 31, 2013	$	7,483
Additions to warranty liability		5,758
Warranty liability utilized		(4,631)
Balance at September 30, 2014	$	8,610

XML

Deferred Revenue (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Deferred Revenue [Abstract]
Deferred Revenue, Current	$ 9,810	$ 5,715

XML

Goodwill and Other Intangible Assets (Schedule of Expected Amortization Expense) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Goodwill and Other Intangible Assets [Abstract]
2014	$ 1,190
2015	4,502
2016	4,328
2017	4,329
2018	4,182
2019 and thereafter	31,258
Net Carrying Amount	$ 49,789	$ 51,846

XML

Borrowings (Narrative) (Details) In Thousands, unless otherwise specified			9 Months Ended			9 Months Ended
	Sep. 30, 2014 PNC Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A. and Citizens Bank of Pennsylvania [Member] Letter of Credit [Member] USD ($)	Sep. 30, 2014 PNC Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A. and Citizens Bank of Pennsylvania [Member] Foreign Line of Credit [Member] USD ($)	Sep. 30, 2014 PNC Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A. and Citizens Bank of Pennsylvania [Member] Revolving Credit Facility [Member] USD ($)	Dec. 31, 2013 PNC Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A. and Citizens Bank of Pennsylvania [Member] Revolving Credit Facility [Member] USD ($)	Sep. 30, 2014 PNC Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A. and Citizens Bank of Pennsylvania [Member] Prior Revolving Credit Facility [Member] USD ($)	Sep. 30, 2014 NatWest Bank [Member] Foreign Line of Credit [Member] USD ($)	Sep. 30, 2014 NatWest Bank [Member] Foreign Line of Credit [Member] GBP (£)	Sep. 30, 2014 NatWest Bank Outstanding Guarantees [Member] Foreign Line of Credit [Member] USD ($)	Dec. 31, 2013 NatWest Bank Outstanding Guarantees [Member] Foreign Line of Credit [Member] USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Initiation Date			Sep. 23, 2014
Line of Credit Facility, Maximum Borrowing Capacity		$ 25,000	$ 200,000		$ 125,000	$ 2,432	£ 1,500
Debt Instrument, Term			5 years
Line of Credit Facility, Borrowing Capacity, Description			The Amended Credit Agreement provides for a five-year, unsecured revolving credit facility that permits borrowing up to $200,000 for the U.S. borrowers and a sublimit of the equivalent of $25,000 U.S. dollars that is available to the Canadian borrowers. The Amended Credit Agreement also modifies the accordion feature in the prior revolving credit facility which permitted a maximum increase of $50,000. The Amended Credit Agreement's accordion feature permits the Company to increase the available revolving borrowings under the facility by up to an additional $100,000 subject to the Company's receipt of increased commitments from existing lenders or new commitments from new lenders and to certain conditions being satisfied. The Amended Credit Agreement also increases the sublimit for the issuance of trade and standby letters of credit from $20,000 to $30,000.
Line of Credit Facility, Interest Rate Description			Borrowings under the Amended Credit Agreement will bear interest at rates based upon either the base rate or Euro-rate plus applicable margins. Applicable margins are dictated by the ratio of the Company's indebtedness less cash on hand to the Company's consolidated EBITDA, as defined in the underlying Amended Credit Agreement. The base rate is the highest of (a) PNC Bank's prime rate, (b) the Federal Funds Rate plus 0.50% or (c) the daily Euro-rate (as defined in the Amended Credit Agreement) plus 1.00%. The base rate and Euro-rate spreads range from 0.00% to 1.00% and 1.00% to 2.00%, respectively.			. The interest rate on this facility is the financial institution's base rate plus 1.50%.	. The interest rate on this facility is the financial institution's base rate plus 1.50%.
Line of Credit Facility, Covenant Terms			The Amended Credit Agreement includes two financial covenants: (a) Leverage Ratio, defined as the Company's indebtedness less cash on hand, in excess of $15,000, divided by the Company's consolidated EBITDA, which must not exceed 3.25 to 1.00 and (b) Minimum Interest Coverage, defined as consolidated EBITDA less capital expenditures divided by consolidated interest expense, which must be no less than 3.00 to 1.00.			The United Kingdom loan agreements contain certain financial covenants that require that subsidiary to maintain senior interest and cash flow coverage ratios.	The United Kingdom loan agreements contain certain financial covenants that require that subsidiary to maintain senior interest and cash flow coverage ratios.
Line of Credit Facility, Dividend Restrictions			Dividends, distributions, and redemptions are capped at $25,000 per year when funds are drawn on the facility. If no drawings on the facility exist, dividends, distributions, and redemptions in excess of $25,000 per year are subjected to a limitation of $75,000 in the aggregate. The $75,000 aggregate limitation also permits certain loans, investments, and acquisitions.
Line of Credit Facility, Amount Outstanding	713		0	0		0		31	60
Line of Credit Facility, Current Borrowing Capacity			$ 199,287			$ 2,401
Line of Credit Facility, Collateral						This credit facility supports the subsidiary's working capital requirements and is collateralized by substantially all of the assets of its United Kingdom operations.	This credit facility supports the subsidiary's working capital requirements and is collateralized by substantially all of the assets of its United Kingdom operations.
Line of Credit Facility, Asset Restrictions			Other restrictions exist at all times including, but not limited to, limitation of the Company's sale of assets, other indebtedness incurred by either the borrowers or the non-borrower subsidiaries of the Company, guarantees, and liens.
Line of Credit Facility, Covenant Compliance			As of September 30, 2014, the Company was in compliance with the Amended Credit Agreement's covenants.			The subsidiary was in compliance with these financial covenants as of September 30, 2014.	The subsidiary was in compliance with these financial covenants as of September 30, 2014.

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Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Goodwill	$ 59,603		$ 59,603		$ 57,781
Finite-Lived Intangible Assets, Gross	62,315		62,315		60,967
Intangible Assets, Net (Excluding Goodwill)	49,789		49,789		51,846
Amortization of Intangible Assets	1,191	701	3,504	2,102
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life			25 years
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life			5 years
Weighted Average [Member]
Finite-Lived Intangible Asset, Useful Life			17 years
Rail Products Segment [Member]
Goodwill	38,026		38,026		38,026
Finite-Lived Intangible Assets, Gross	44,455		44,455		44,455
Construction Products Segment [Member]
Goodwill	5,033		5,033		3,211
Finite-Lived Intangible Assets, Gross	3,178		3,178		1,830
Tubular Products Segments [Member]
Goodwill	16,544		16,544		16,544
Finite-Lived Intangible Assets, Gross	$ 14,682		$ 14,682		$ 14,682

XML

Inventories (Tables)

9 Months Ended

Sep. 30, 2014

Inventories [Abstract]

Schedule of Inventory Of Continuing Operations [Table Text Block]

		September 30,		December 31,
		2014		2013
Finished goods	$	65,756	$	55,166
Work-in-process		12,186		11,332
Raw materials		21,380		19,485
Total inventories at current costs		99,322		85,983
Less: LIFO reserve		(8,527)		(9,027)
	$	90,795	$	76,956

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Earning Per Common Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Common Share [Abstract]
Income from continuing operations	$ 9,119	$ 9,793	$ 19,616	$ 22,001
Income from discontinued operations	(3)		11	14
Net income	$ 9,116	$ 9,793	$ 19,627	$ 22,015
Weighted average shares	10,239	10,182	10,220	10,171
Denominator for basic earnings per common share	10,239	10,182	10,220	10,171
Employee stock options	4	11	7	11
Other stock compensation plans	92	88	98	73
Dilutive potential common shares	96	99	105	84
Denominator for diluted earnings per common share - adjusted weighted average shares and assumed conversions	10,335	10,281	10,325	10,255
Basic earnings per common share: From continuing operations	$ 0.89	$ 0.96	$ 1.92	$ 2.16
Basic earnings per common share: From discontinued operations	$ 0.00		$ 0.00	$ 0.00
Basic earnings per common share	$ 0.89	$ 0.96	$ 1.92	$ 2.16
Diluted earnings per common share: From continuing operations	$ 0.88	$ 0.95	$ 1.90	$ 2.15
Diluted earnings per common share: From discontinued operations	$ 0.00		$ 0.00	$ 0.00
Diluted earnings per common share	$ 0.88	$ 0.95	$ 1.90	$ 2.15
Common Stock, Dividends, Per Share, Cash Paid	$ 0.03	$ 0.03	$ 0.09	$ 0.09

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Financial Statements (Policy)

9 Months Ended

Sep. 30, 2014

Financial Statements [Abstract]

Basis of Presentation [Policy Text Block]

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.  In the opinion of management, all estimates and adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  However, actual results could differ from those estimates.  The results of operations for interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.  Amounts included in the balance sheet as of December 31, 2013 were derived from our audited balance sheet.  This Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In this Quarterly Report on Form 10-Q, references to “Foster,” “we,” “us,” “our,” and the “Company” refer collectively to L.B. Foster and its consolidated subsidiaries.

Recently issued accounting standards [Policy Text Block]

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, “Revenue Recognition.” ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating its implementation approach and assessing the impact of ASU 2014-09 on our financial position and results of operations.

In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern - Disclosures of Uncertainties about an entity's Ability to Continue as a Going Concern.” ASU 2014-15 provides new guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards and to provide related footnote disclosures. This new guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The requirements of ASU 2014-15 are not expected to have a significant impact on the Condensed Consolidated Financial Statements.

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Inventories (Schedule of Inventory) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Inventories [Abstract]
Finished goods	$ 65,756	$ 55,166
Work-in-process	12,186	11,332
Raw materials	21,380	19,485
Total inventories at current costs	99,322	85,983
Less: LIFO reserve	(8,527)	(9,027)
Inventory	$ 90,795	$ 76,956

XML

Business Segments (Reconciliation of Operating Profit (Loss) from Segments to Consolidated) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Business Segments [Abstract]
Income for reportable segments	$ 16,445	$ 13,553	$ 36,496	$ 35,261
Interest expense	(126)	(118)	(375)	(376)
Interest income	140	149	431	494
Other income	47	638	297	953
LIFO income (expense)	302	553	500	299
Equity in income of nonconsolidated investment	477	296	823	892
Corporate expense, cost of capital elimination and other unallocated charges	(3,423)	(1,049)	(8,782)	(4,962)
Income from continuing operations before income taxes	$ 13,862	$ 14,022	$ 29,390	$ 32,561

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Retirement Plans (Tables)

9 Months Ended

Sep. 30, 2014

Defined Benefit Plan Disclosure [Line Items]

Schedule of Costs of Retirement Plans [Table Text Block]

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Salaried Plan	$	672	$	478	$	1,751	$	1,422
Union Plan		20		18		59		53
Montreal Plan		20		28		65		88
United Kingdom Plan		32		27		100		95
Burnaby Plan		32		34		107		111
	$	776	$	585	$	2,082	$	1,769

United States Pension Plans of US Entity, Defined Benefit [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Net Benefit Costs [Table Text Block]

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Service cost	$	5	$	8	$	17	$	25
Interest cost		193		177		578		530
Expected return on plan assets		(242)		(214)		(726)		(642)
Recognized net actuarial loss		16		53		49		159
Net periodic pension (income) cost	$	(28)	$	24	$	(82)	$	72

United Kingdom Benefit Plans [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Net Benefit Costs [Table Text Block]

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Interest cost	$	97	$	85	$	297	$	255
Expected return on plan assets		(92)		(73)		(281)		(219)
Amortization of transition amount		(7)		(12)		(21)		(36)
Recognized net actuarial loss		49		57		149		171
Net periodic pension cost	$	47	$	57	$	144	$	171

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Investments (Schedule Of Carrying Amount And Maximum Loss Exposure Of Equity Investments) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Schedule of Equity Method Investments [Line Items]
Equity method investment	$ 5,365	$ 5,090
Net investment in direct financing lease	1,144	1,224
Maximum exposure to loss	6,427	6,314
LB Pipe & Coupling Products, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity method investment	$ 5,283	$ 5,090

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Income Taxes (Reconciliation Of Income Tax Rates) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Taxes [Abstract]
Statutory rate	35.00%		35.00%
Effective income tax rate	34.20%	30.20%	33.30%	32.40%

XML

Retirement Plans (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 contract	Sep. 30, 2013
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan Number			5
Description of Postemployment Benefits			The Company sponsors five defined contribution plans for hourly and salaried employees across our domestic and international facilities. The following table summarizes the expense associated with the contributions made to these plans.
Defined Contribution Plan, Cost Recognized	$ 776	$ 585	$ 2,082	$ 1,769
Salaried Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Cost Recognized	672	478	1,751	1,422
Union Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Cost Recognized	20	18	59	53
Canadian Employees [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan Number			2
Post-retirement benefit plan number			1
United Kingdom Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Number			1
Defined Contribution Plan Number			1
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year			292
Defined Benefit Plan, Contributions by Employer			219
Defined Contribution Plan, Cost Recognized	32	27	100	95
United States Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of retirement plans			5
Defined Benefit Plan Number			3
Active Defined Benefit Plan Number			1
Inactive Defined Benefit Plan Number			2
Defined Contribution Plan Number			2
United States Pension Plans of US Entity, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year			408
Defined Benefit Plan, Contributions by Employer			$ 300

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Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 62,315	$ 60,967
Accumulated Amortization	(12,526)	(9,121)
Net Carrying Amount	49,789	51,846
Non-compete agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	2,984	2,860
Accumulated Amortization	(552)	(117)
Net Carrying Amount	2,432	2,743
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	639	639
Accumulated Amortization	(274)	(201)
Net Carrying Amount	365	438
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	20,484	19,960
Accumulated Amortization	(4,378)	(3,575)
Net Carrying Amount	16,106	16,385
Supplier relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	350	350
Accumulated Amortization	(252)	(213)
Net Carrying Amount	98	137
Trademarks and trade names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	7,616	7,003
Accumulated Amortization	(1,714)	(1,334)
Net Carrying Amount	5,902	5,669
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	30,242	30,155
Accumulated Amortization	(5,356)	(3,681)
Net Carrying Amount	$ 24,886	$ 26,474
Weighted Average [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period In Years	17 years
Weighted Average [Member] | Non-compete agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period In Years	5 years	5 years
Weighted Average [Member] | Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period In Years	10 years	10 years
Weighted Average [Member] | Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period In Years	23 years	23 years
Weighted Average [Member] | Supplier relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period In Years	5 years	5 years
Weighted Average [Member] | Trademarks and trade names [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period In Years	16 years	16 years
Weighted Average [Member] | Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period In Years	15 years	15 years

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Business Segments

9 Months Ended

Sep. 30, 2014

Business Segments [Abstract]

BUSINESS SEGMENTS

2. BUSINESS SEGMENTS

The Company is a leading manufacturer, fabricator, and distributor of products and services for rail, construction, energy, and utility markets. The Company is organized and evaluated by product group, which is the basis for identifying reportable segments. Each segment represents a revenue-producing component of the Company for which separate financial information is produced internally and is subject to evaluation by the Company’s chief operating decision maker in deciding how to allocate resources. Each segment is evaluated based upon their contribution to the Company’s consolidated results based upon segment profit.

The following tables illustrate revenues and profits from continuing operations of the Company by segment for the periods indicated:

		Three Months Ended				Nine Months Ended
		September 30, 2014				September 30, 2014
		Net		Segment		Net		Segment
		Sales		Profit		Sales		Profit
Rail Products	$	102,105	$	11,533	$	283,085	$	23,685
Construction Products		49,907		3,251		119,100		7,838
Tubular Products		15,785		1,661		43,858		4,973
Total	$	167,797	$	16,445	$	446,043	$	36,496

		Three Months Ended				Nine Months Ended
		September 30, 2013				September 30, 2013
		Net		Segment		Net		Segment
		Sales		Profit		Sales		Profit
Rail Products	$	105,552	$	9,713	$	277,843	$	21,749
Construction Products		49,320		2,855		129,828		5,373
Tubular Products		7,376		985		33,834		8,139
Total	$	162,248	$	13,553	$	441,505	$	35,261

Segment profits from continuing operations, as shown above, include internal cost of capital charges for assets used in the segment at a rate of generally 1% per month. There has been no change in the measurement of segment profit from continuing operations from December 31, 2013. The internal cost of capital charges are eliminated during the consolidation process.

The following table provides a reconciliation of reportable segment net profit from continuing operations to the Company’s consolidated total:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Income for reportable segments	$	16,445	$	13,553	$	36,496	$	35,261
Interest expense		(126)		(118)		(375)		(376)
Interest income		140		149		431		494
Other income		47		638		297		953
LIFO income		302		553		500		299
Equity in income of nonconsolidated investments		477		296		823		892
Corporate expense, cost of capital elimination, and other unallocated charges		(3,423)		(1,049)		(8,782)		(4,962)
Income from continuing operations before income taxes	$	13,862	$	14,022	$	29,390	$	32,561

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Retirement Plans (Schedule Of Net Periodic Benefit Costs) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
United States Pension Plans of US Entity, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 5	$ 8	$ 17	$ 25
Interest cost	193	177	578	530
Expected return on plan assets	(242)	(214)	(726)	(642)
Recognized net actuarial loss	16	53	49	159
Net periodic benefit (income) cost	(28)	24	(82)	72
United Kingdom Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	97	85	297	255
Expected return on plan assets	(92)	(73)	(281)	(219)
Amortization of transition amount	(7)	(12)	(21)	(36)
Recognized net actuarial loss	49	57	149	171
Net periodic benefit (income) cost	$ 47	$ 57	$ 144	$ 171

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Acquisitions (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 12,786
L.B. Foster Ball Winch, Inc. [Member]
Business Acquisition [Line Items]
Business Acquisition, Name of Acquired Entity		Ball Winch, LLC (Ball Winch).
Payments to Acquire Businesses, Net of Cash Acquired		37,500
Business Combination, Indemnification Assets, Amount as of Acquisition Date		3,300
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net		37,995
Payments for Previous Acquisition	495
Carr Concrete Corporation [Member]
Business Acquisition [Line Items]
Business Acquisition, Effective Date of Acquisition	Jul. 07, 2014
Business Acquisition, Name of Acquired Entity	Carr Concrete Corporation (Carr)
Payments to Acquire Businesses, Net of Cash Acquired	12,491
Accrued post-closing purchase price adjustment	200
Business Combination, Indemnification Assets, Amount as of Acquisition Date	1,000
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	$ 12,491

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Fair Value Measurements (Policies)

9 Months Ended

Sep. 30, 2014

Fair Value Measurements [Abstract]

Fair Value Measurement, Policy [Policy Text Block]

The Company determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s own assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below.

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The Company has an established process for determining fair value for its financial assets and liabilities, principally cash and cash equivalents and at times foreign currency exchange contracts. Fair value is based on quoted market prices, where available. If quoted market prices are not available, fair value is based on assumptions that use as inputs market-based parameters.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash equivalents.  Included within “Cash and cash equivalents” are investments in money market funds with various underlying securities all of which maintain AAA credit ratings.  Also included within cash equivalents are our highly liquid investments in non-domestic bank term deposits.  The Company uses quoted market prices to determine the fair value of these investments and they are classified in Level 1 of the fair value hierarchy.  The carrying amounts approximate fair value because of the short maturity of the instruments.

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Stock-Based Compensation (Policy)

9 Months Ended

Sep. 30, 2014

Stock-based Compensation [Abstract]

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

The Company applies the provisions of FASB ASC 718, “Compensation – Stock Compensation,” to account for the Company’s share-based compensation.  Share-based compensation cost is measured at the grant date based on the calculated fair value of the award and is recognized over the employees’ requisite service period.

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Discontinued Operations (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Discontinued Operations [Abstract]
Assets of Disposal Group, Including Discontinued Operation, Current	$ 14	$ 149
Liabilities of Disposal Group, Including Discontinued Operation, Current	$ 0	$ 26

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Acquisitions (Allocation of Purchase Price) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Goodwill	$ 59,603	$ 57,781
L.B. Foster Ball Winch, Inc. [Member]
Business Acquisition [Line Items]
Current assets		1,857
Other assets		64
Property, plant and equipment		5,555
Goodwill		16,544
Other intangibles		14,682
Current liabilities		(707)
Total		37,995
Carr Concrete Corporation [Member]
Business Acquisition [Line Items]
Current assets	3,204
Other assets	145
Property, plant and equipment	7,648
Goodwill	1,822
Other intangibles	1,348
Current liabilities	(1,676)
Total	$ 12,491

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Business Segments (Tables)

9 Months Ended

Sep. 30, 2014

Business Segments [Abstract]

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

		Three Months Ended				Nine Months Ended
		September 30, 2014				September 30, 2014
		Net		Segment		Net		Segment
		Sales		Profit		Sales		Profit
Rail Products	$	102,105	$	11,533	$	283,085	$	23,685
Construction Products		49,907		3,251		119,100		7,838
Tubular Products		15,785		1,661		43,858		4,973
Total	$	167,797	$	16,445	$	446,043	$	36,496

		Three Months Ended				Nine Months Ended
		September 30, 2013				September 30, 2013
		Net		Segment		Net		Segment
		Sales		Profit		Sales		Profit
Rail Products	$	105,552	$	9,713	$	277,843	$	21,749
Construction Products		49,320		2,855		129,828		5,373
Tubular Products		7,376		985		33,834		8,139
Total	$	162,248	$	13,553	$	441,505	$	35,261

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Income for reportable segments	$	16,445	$	13,553	$	36,496	$	35,261
Interest expense		(126)		(118)		(375)		(376)
Interest income		140		149		431		494
Other income		47		638		297		953
LIFO income		302		553		500		299
Equity in income of nonconsolidated investments		477		296		823		892
Corporate expense, cost of capital elimination, and other unallocated charges		(3,423)		(1,049)		(8,782)		(4,962)
Income from continuing operations before income taxes	$	13,862	$	14,022	$	29,390	$	32,561

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Acquisitions (Tables)

9 Months Ended

Sep. 30, 2014

Acquisitions [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

		July 7, 2014		November 7, 2013
Allocation of Purchase Price		Carr Fair Value		Ball Winch Fair Value
Current assets	$	3,204	$	1,857
Other assets		145		64
Property, plant, and equipment		7,648		5,555
Goodwill		1,822		16,544
Other intangibles		1,348		14,682
Current liabilities		(1,676)		(707)
Total	$	12,491	$	37,995

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

Intangible Asset		July 7, 2014 Carr Fair Value		November 7, 2013 Ball Winch Fair Value
Trade name	$	613	$	723
Technology and customer relationships		611		11,129
Non-competition agreements		124		2,830
Total identified intangible assets	$	1,348	$	14,682

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Financial Statements

9 Months Ended

Sep. 30, 2014

Financial Statements [Abstract]

FINANCIAL STATEMENTS

1. FINANCIAL STATEMENTS

(Dollars in thousands, except share data)

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.  In the opinion of management, all estimates and adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  However, actual results could differ from those estimates.  The results of operations for interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.  Amounts included in the balance sheet as of December 31, 2013 were derived from our audited balance sheet.  This Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In this Quarterly Report on Form 10-Q, references to “Foster,” “we,” “us,” “our,” and the “Company” refer collectively to L.B. Foster and its consolidated subsidiaries.

Recently issued accounting standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, “Revenue Recognition.” ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating its implementation approach and assessing the impact of ASU 2014-09 on our financial position and results of operations.

In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern - Disclosures of Uncertainties about an entity's Ability to Continue as a Going Concern.” ASU 2014-15 provides new guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards and to provide related footnote disclosures. This new guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The requirements of ASU 2014-15 are not expected to have a significant impact on the Condensed Consolidated Financial Statements.

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2014

Goodwill and Other Intangible Assets [Abstract]

Schedule of Goodwill [Table Text Block]

		September 30,		December 31,
		2014		2013
Rail Products	$	38,026	$	38,026
Construction Products		5,033		3,211
Tubular Products		16,544		16,544
	$	59,603	$	57,781

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	September 30, 2014
	Weighted Average		Gross				Net
	Amortization Period		Carrying		Accumulated		Carrying
	In Years		Value		Amortization		Amount
Non-compete agreements	5	$	2,984	$	(552)	$	2,432
Patents	10		639		(274)		365
Customer relationships	23		20,484		(4,378)		16,106
Supplier relationships	5		350		(252)		98
Trademarks and trade names	16		7,616		(1,714)		5,902
Technology	15		30,242		(5,356)		24,886
		$	62,315	$	(12,526)	$	49,789

	December 31, 2013
	Weighted Average		Gross				Net
	Amortization Period		Carrying		Accumulated		Carrying
	In Years		Value		Amortization		Amount
Non-compete agreements	5	$	2,860	$	(117)	$	2,743
Patents	10		639		(201)		438
Customer relationships	23		19,960		(3,575)		16,385
Supplier relationships	5		350		(213)		137
Trademarks and trade names	16		7,003		(1,334)		5,669
Technology	15		30,155		(3,681)		26,474
		$	60,967	$	(9,121)	$	51,846

Schedule of Expected Amortization Expense [Table Text Block]

		Amortization Expense
2014	$	1,190
2015		4,502
2016		4,328
2017		4,329
2018		4,182
2019 and thereafter		31,258
	$	49,789

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Business Segments (Narrative) (Details)	9 Months Ended
	Sep. 30, 2014
Business Segments [Abstract]
Capital Charges Rate	1.00%
Segment Reporting, Measurement for Transactions Between Reportable Segments	Segment profits from continuing operations, as shown above, include internal cost of capital charges for assets used in the segment at a rate of generally 1% per month. There has been no change in the measurement of segment profit from continuing operations from December 31, 2013. The internal cost of capital charges are eliminated during the consolidation process.

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Investments (Schedule of Direct Financing Future Minimum Lease Payments for Capital Leases Table) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014
Investments [Abstract]
2014	$ 34
2015	122
2016	131
2017	140
2018	150
2019 and thereafter	567
Capital Leases, Future Minimum Payments Receivable, Total	$ 1,144

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 86,516	$ 64,623
Accounts receivable - net	91,178	98,437
Inventories - net	90,795	76,956
Current deferred tax assets	461	461
Prepaid income tax	233	4,741
Other current assets	3,556	2,000
Current assets of discontinued operations	14	149
Total current assets	272,753	247,367
Property, plant and equipment, net	63,105	50,109
Goodwill	59,603	57,781
Other intangibles - net	49,789	51,846
Investments	5,365	5,090
Other assets	1,750	1,461
Total Assets	452,365	413,654
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	60,229	46,620
Deferred revenue	9,810	5,715
Accrued payroll and employee benefits	9,333	8,927
Accrued warranty	8,610	7,483
Current maturities of long-term debt	104	31
Current deferred tax liabilities	179	179
Other accrued liabilities	8,885	6,501
Liabilities of discontinued operations	0	26
Total Current Liabilities	97,150	75,482
Long-term debt	270	25
Deferred tax liabilities	11,086	11,798
Other long-term liabilities	9,378	9,952
STOCKHOLDERS' EQUITY:
Common stock, par value $.01, authorized 20,000,000 shares; shares issued at September 30, 2014 and December 31, 2013, 11,115,779; shares outstanding at September 30, 2014 and December 31, 2013, 10,238,906 and 10,188,521	111	111
Paid-in capital	47,649	47,239
Retained earnings	317,057	298,361
Treasury stock - at cost, common stock, shares at September 30, 2014 and December 31, 2013, 876,873 and 927,258	(23,242)	(24,731)
Accumulated other comprehensive loss	(7,094)	(4,583)
Total stockholders' equity	334,481	316,397
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 452,365	$ 413,654

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Acquisitions (Identifiable Intangible Assets Acquired) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended				9 Months Ended
	Dec. 31, 2013 L.B. Foster Ball Winch, Inc. [Member]	Dec. 31, 2013 L.B. Foster Ball Winch, Inc. [Member] Trade name [Member]	Dec. 31, 2013 L.B. Foster Ball Winch, Inc. [Member] Technology and customer relationships [Member]	Dec. 31, 2013 L.B. Foster Ball Winch, Inc. [Member] Non-compete agreements [Member]	Sep. 30, 2014 Carr Concrete Corporation [Member]	Sep. 30, 2014 Carr Concrete Corporation [Member] Trade name [Member]	Sep. 30, 2014 Carr Concrete Corporation [Member] Technology and customer relationships [Member]	Sep. 30, 2014 Carr Concrete Corporation [Member] Non-compete agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 14,682	$ 723	$ 11,129	$ 2,830	$ 1,348	$ 613	$ 611	$ 124

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Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Consolidated Statements of Comprehensive Income
Reclassification of pension liability adjustments to earnings, tax	$ 24	$ 36	$ 71	$ 109

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Stock-Based Compensation (Summary of Stock Option Activity) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Stock-based Compensation [Abstract]
Shares, Outstanding and Exercisable, Beginning of Period		18,750
Shares, Exercised	0	(11,250)	(3,750)
Shares, Outstanding and Exercisable, End of Period	7,500	7,500		18,750
Weighted Average Exercise Price, Outstanding and Exercisable at Beginning of Year		$ 10.64
Weighted Average Exercise Price, Exercised		$ 11.67	$ 9.30
Weighted Average Exercise Price, Outstanding and Exercisable at End of Period	$ 9.08	$ 9.08		$ 10.64
Weighted Average Remaining Contractual Term, Outstanding and Exercisable, Beginning		7 months 6 days	1 year 6 months	1 year 3 months 18 days
Weighted Average Remaining Contractual Term, Outstanding and Exercisable, Ending		7 months 6 days	1 year 6 months	1 year 3 months 18 days
Aggregate Intrinsic Value, Outstanding and Exercisable at End of Period	$ 276	$ 276	$ 658

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Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Common Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Numerator for basic and diluted earnings per common share -
Income available to common stockholders:
Income from continuing operations	$	9,119	$	9,793	$	19,616	$	22,001
(Loss) Income from discontinued operations		(3)		-		11		14
Net income	$	9,116	$	9,793	$	19,627	$	22,015
Denominator:
Weighted average shares		10,239		10,182		10,220		10,171
Denominator for basic earnings per common share		10,239		10,182		10,220		10,171
Effect of dilutive securities:
Employee stock options		4		11		7		11
Other stock compensation plans		92		88		98		73
Dilutive potential common shares		96		99		105		84
Denominator for diluted earnings per common share - adjusted weighted average shares and assumed conversions		10,335		10,281		10,325		10,255
Basic earnings per common share:
Continuing operations	$	0.89	$	0.96	$	1.92	$	2.16
Discontinued operations		(0.00)		-		0.00		0.00
Basic earnings per common share	$	0.89	$	0.96	$	1.92	$	2.16
Diluted earnings per common share:
Continuing operations	$	0.88	$	0.95	$	1.90	$	2.15
Discontinued operations		(0.00)		-		0.00		0.00
Diluted earnings per common share	$	0.88	$	0.95	$	1.90	$	2.15
Dividends paid per common share	$	0.03	$	0.03	$	0.09	$	0.09

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Commitments and Contingent Liabilites (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	156 Months Ended			9 Months Ended				9 Months Ended	12 Months Ended	156 Months Ended
	Dec. 31, 2011 item	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 Reserve for Concrete Ties [Member]	Dec. 31, 2013 Reserve for Concrete Ties [Member]	Sep. 30, 2014 Reserve for Environmental Costs [Member]	Dec. 31, 2013 Reserve for Environmental Costs [Member]	Sep. 30, 2014 The UPRR [Member] item	Dec. 31, 2012 The UPRR [Member]	Dec. 31, 2011 The UPRR [Member] item
Product Liability Contingency [Line Items]
Concrete Ties Manufactured	3,000,000									1,600,000
Unreconciled warranty ties								170,000
Product Warranty Expense				$ 608				$ 4,000	$ 22,000
Standard Product Warranty Accrual		8,610	7,483	7,576	6,462
Accrual for Environmental Loss Contingencies						$ 3,305	$ 2,192

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Commitments and Contingent Liabilities

9 Months Ended

Sep. 30, 2014

Commitments and Contingent Liabilities [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

15. COMMITMENTS AND CONTINGENT LIABILITIES

Product Liability Claims

The Company is subject to product warranty claims that arise in the ordinary course of its business.  For certain manufactured products, the Company maintains a product warranty accrual which is adjusted on a monthly basis as a percentage of cost of sales.  The product warranty accrual is continually reviewed and periodically adjusted based on the identification or resolution of known individual product warranty claims.  The following table sets forth the Company’s continuing operations product warranty accrual:

		Warranty Liability
Balance at December 31, 2013	$	7,483
Additions to warranty liability		5,758
Warranty liability utilized		(4,631)
Balance at September 30, 2014	$	8,610

Included within the above table are concrete tie warranty reserves of approximately $7,576 and $6,462 as of September 30, 2014 and December 31, 2013, respectively. Increases to the warranty reserve relate to the Company’s standard warranty accrual which is based upon historical claims experience, as well as an incremental $608 reserve related to a transit project warranty issue, and a $4,000 charge related to the Union Pacific Railroad (UPRR) warranty claim recorded during the 2014 second quarter. The incremental adjustment to the transit project addresses a previously established reserve that is nearing completion.  Reductions to the reserve balance primarily relate to warranty claims satisfied through the replacement of concrete ties during the nine-month period ended September 30, 2014. 

UPRR Warranty Claim

In July 2011, the UPRR notified the Company and its subsidiary, CXT Incorporated (CXT), of a warranty claim under CXT’s 2005 supply contract relating to the sale of pre-stressed concrete railroad ties to the UPRR. The UPRR asserted that a significant percentage of concrete ties manufactured in 2006 through 2011 at CXT’s former Grand Island, NE facility failed to meet contract specifications, had workmanship defects, and were cracking and failing prematurely.  Of the 3.0 million ties manufactured between 1999 and 2011 from the Grand Island, NE facility, approximately 1.6 million relate to concrete ties sold to the UPRR during the period of their claim.

During 2012, as a result of testing and analysis conducted, including with UPRR, on concrete ties manufactured at its former Grand Island, NE facility, the Company reached an agreement with UPRR to amend the 2005 supply contract (2012 amended supply agreement) and, among other matters, reverted to a previously used warranty policy of a 15 year warranty with a 1:1 replacement ratio for all ties sold to UPRR (during most of the period of UPRR’s original claim the warranty policy was a 5 year warranty with a 1.5:1 replacement ratio for any defective ties) and established a process to identify, prioritize, and replace ties that meet the criteria for replacement.

The Company provided warranty replacement ties to UPRR during 2013 for ties which UPRR removed and asserted qualified for warranty replacement. However, the Company believed a significant number of ties replaced by UPRR did not meet the warranty replacement criteria and so informed UPRR. UPRR has claimed that the Company is in breach of the 2012 amended supply agreement for various reasons. The Company has denied UPRR’s claim that it is in material breach of the 2012 amended supply agreement.

As of September 30, 2014, the Company and the UPRR have not been able to reconcile the disagreement related to the 2013 warranty replacement activity. The disagreement includes approximately 170,000 ties. The Company and the UPRR have also not been able to reconcile the 2014 warranty replacement activity during the current year.

The Company continues to work with UPRR to identify, replace, and reconcile defective ties related to the warranty claim in accordance with the 2012 amended supply agreement. The Company and UPRR met during the third quarter of 2014 to evaluate each other’s position in an effort to work towards agreement on the unreconciled 2013 and 2014 replacement activity as well as the standards and practices to be implemented for future replacement activity and warranty tie replacement. No agreement was reached and the Company continues to endeavor to reconcile the replaced warranty ties with UPRR.

In the event that the Company and UPRR do not reach agreement regarding the 2013 and 2014 replacement activity and future activity and is found to be in material breach of the 2012 amended supply agreement, the UPRR may seek damages from the Company and/or terminate the agreement. 

During 2012, the Company recorded pre-tax warranty charges of $22,000 in “Cost of Goods Sold” within its Rail Products segment. The accrual was based on the Company’s estimate of the number of defective concrete ties that will ultimately require replacement during the applicable warranty periods at an average cost of fifty dollars per concrete tie. Subsequently, in the second quarter of 2014, the Company increased its accrual by an additional $4,000 based on recent estimates of ties to be replaced. The concrete tie warranty reserve is the best estimate of the expected value of defective ties that will be replaced as a result of observation and analysis of ties in track. While the Company believes this is a reasonable estimate of these potential warranty claims, these estimates could change due to the receipt of new information and future events. The Company will continue to assess the adequacy of its product warranty reserve as additional information becomes available.  There can be no assurance at this point that future potential costs pertaining to these claims or other potential future claims will not have a material impact on the Company’sfinancial condition or results of operations.

Environmental and Legal Proceedings

The Company is subject to national, state, foreign, provincial, and/or local laws and regulations relating to the protection of the environment.  The Company’s efforts to comply with environmental regulations may have an adverse effect on its future earnings.  In the opinion of management, compliance with the present environmental protection laws will not have a material adverse effect on the financial condition, results of operations, cash flows, competitive position, or capital expenditures of the Company.

The Company is also subject to legal proceedings and claims that arise in the ordinary course of its business.  In the opinion of management, the amount of ultimate liability with respect to these actions will not materially affect the financial condition or liquidity of the Company.  The resolution, in any reporting period, of one or more of these matters could have a material effect on the Company’s results of operations for that period.

As of September 30, 2014 and December 31, 2013, the Company maintained environmental and litigation reserves approximating $3,305 and $2,192, respectively.

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2014

Stock-based Compensation [Abstract]

Summary of Stock Option Activity [Table Text Block]

				Weighted		Aggregate
			Weighted	Average		Intrinsic
			Average	Remaining		Value
			Exercise	Contractual		(Dollars in
	Shares		Price	Term		thousands)
Outstanding and Exercisable at January 1, 2014	18,750	$	10.64	1.3
Granted	-		-	-
Canceled	-		-	-
Exercised	(11,250)		11.67	-
Outstanding and Exercisable at September 30, 2014	7,500	$	9.08	0.6	$	276

Schedule of Nonvested Share Activity [Table Text Block]

The following table summarizes the Restricted Stock Award and Performance Unit Award activity for the period ended September 30, 2014:

				Weighted
				Average
	Restricted	Performance		Grant
	Stock	Stock		Date
	Units	Units		Fair Value
Outstanding at January 1, 2014	129,726	61,651	$	34.00
Granted	19,051	34,652		44.07
Vested	(36,302)	(13,588)		33.96
Adjustment for incentive awards expected to vest	-	(7,845)		43.59
Canceled	-	(2,880)		44.13
Outstanding at September 30, 2014	112,475	71,990	$	36.38

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Subsequent Events

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

17. SUBSEQUENT EVENTS

Management evaluated all activity of the Company and concluded that no subsequent events have occurred that would require recognition in the Condensed Consolidated Financial Statements or disclosure in the Notes to the Condensed Consolidated Financial Statements.

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Income from continuing operations	$ 19,616	$ 22,001
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Deferred income taxes	(641)	(661)
Depreciation and amortization	9,247	7,098
Equity in income of nonconsolidated investment	(823)	(892)
Loss on sales and disposals of property, plant, and equipment	15	48
Share-based compensation	2,403	1,528
Excess income tax benefit from share-based compensation	(283)	(192)
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable	7,820	(28,931)
Inventories	(11,839)	13,392
Other current assets	(437)	(1,676)
Prepaid income tax	4,978	(3,418)
Other noncurrent assets	(448)	209
Dividends from LB Pipe & Coupling Products, LLC	630	558
Accounts payable	13,727	6,298
Deferred revenue	4,092	(3,454)
Accrued payroll and employee benefits	475	(2,544)
Other current liabilities	1,206	(6,231)
Other liabilities	(114)	(666)
Net cash provided (used) by continuing operating activities	49,624	2,467
Net cash provided by discontinued operations	114	257
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from the sale of property, plant, and equipment	184
Capital expenditures on property, plant and equipment	(11,593)	(5,648)
Acquisitions	(12,786)
Capital contributions to equity method investments	(82)
Net cash used by continuing investing activities	(24,277)	(5,648)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of other long-term debt	(78)	(14)
Proceeds from other long-term debt	316
Proceeds from exercise of stock options and stock awards	131	35
Financing Fees	(473)
Treasury stock acquisitions	(918)	(633)
Cash dividends on common stock paid to shareholders	(931)	(931)
Excess income tax benefit from share-based compensation	283	192
Net cash used by continuing financing activities	(1,670)	(1,351)
Effect of exchange rate changes on cash and cash equivalents	(1,898)	(1,192)
Net increase (decrease) in cash and cash equivalents	21,893	(5,467)
Cash and cash equivalents at beginning of period	64,623	101,464
Cash and cash equivalents at end of period	86,516	95,997
Supplemental Disclosure of Cash Flow Information:
Interest paid	267	257
Income taxes paid	$ 4,849	$ 14,747

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Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Consolidated Balance Sheets
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	20,000,000	20,000,000
Common stock, issued shares	11,115,779	11,115,779
Common Stock, Shares, Outstanding	10,238,906	10,188,521
Treasury stock shares - at cost, Common Stock	876,873	927,258

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Discontinued Operations

9 Months Ended

Sep. 30, 2014

Discontinued Operations [Abstract]

DISCONTINUED OPERATIONS

10. DISCONTINUED OPERATIONS

The Company maintained current assets from discontinued operations of $14 and $149 as of September 30, 2014 and December 31, 2013, respectively. The Company also maintained current liabilities of $26 as of December 31, 2013.  Sales from the discontinued businesses were not material to the three and nine months ended September 30, 2014 and 2013.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 27, 2014
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Entity Registrant Name	FOSTER L B CO
Entity Central Index Key	0000352825
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		10,351,381
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Trading Symbol	fstr

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Earnings Per Common Share

9 Months Ended

Sep. 30, 2014

Earnings Per Common Share [Abstract]

EARNINGS PER COMMON SHARE

11. EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings per common share:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Numerator for basic and diluted earnings per common share -
Income available to common stockholders:
Income from continuing operations	$	9,119	$	9,793	$	19,616	$	22,001
(Loss) Income from discontinued operations		(3)		-		11		14
Net income	$	9,116	$	9,793	$	19,627	$	22,015
Denominator:
Weighted average shares		10,239		10,182		10,220		10,171
Denominator for basic earnings per common share		10,239		10,182		10,220		10,171
Effect of dilutive securities:
Employee stock options		4		11		7		11
Other stock compensation plans		92		88		98		73
Dilutive potential common shares		96		99		105		84
Denominator for diluted earnings per common share - adjusted weighted average shares and assumed conversions		10,335		10,281		10,325		10,255
Basic earnings per common share:
Continuing operations	$	0.89	$	0.96	$	1.92	$	2.16
Discontinued operations		(0.00)		-		0.00		0.00
Basic earnings per common share	$	0.89	$	0.96	$	1.92	$	2.16
Diluted earnings per common share:
Continuing operations	$	0.88	$	0.95	$	1.90	$	2.15
Discontinued operations		(0.00)		-		0.00		0.00
Diluted earnings per common share	$	0.88	$	0.95	$	1.90	$	2.15
Dividends paid per common share	$	0.03	$	0.03	$	0.09	$	0.09

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Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Consolidated Statements of Operations
Net sales	$ 167,797	$ 162,248	$ 446,043	$ 441,505
Cost of goods sold	132,638	130,943	356,057	356,177
Gross profit	35,159	31,305	89,986	85,328
Selling and administrative expenses	20,644	17,547	58,268	52,628
Amortization expense	1,191	701	3,504	2,102
Interest expense	126	118	375	376
Interest income	(140)	(149)	(431)	(494)
Equity in income of nonconsolidated investment	(477)	(296)	(823)	(892)
Other income	(47)	(638)	(297)	(953)
Total Operating Expenses	21,297	17,283	60,596	52,767
Income from continuing operations before income taxes	13,862	14,022	29,390	32,561
Income tax expense	4,743	4,229	9,774	10,560
Income from continuing operations	9,119	9,793	19,616	22,001
Discontinued operations:
(Loss) Income from discontinued operations before income taxes	(5)		18	23
Income tax (benefit) expense	(2)		7	9
(Loss) Income from discontinued operations	(3)		11	14
Net income	$ 9,116	$ 9,793	$ 19,627	$ 22,015
Basic earnings per common share:
From continuing operations	$ 0.89	$ 0.96	$ 1.92	$ 2.16
From discontinued operations	$ 0.00		$ 0.00	$ 0.00
Basic earnings per common share	$ 0.89	$ 0.96	$ 1.92	$ 2.16
Diluted earnings per common share:
From continuing operations	$ 0.88	$ 0.95	$ 1.90	$ 2.15
From discontinued operations	$ 0.00		$ 0.00	$ 0.00
Diluted earnings per common share	$ 0.88	$ 0.95	$ 1.90	$ 2.15
Dividends paid per common share	$ 0.03	$ 0.03	$ 0.09	$ 0.09

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Accounts Receivable

9 Months Ended

Sep. 30, 2014

Accounts Receivable [Abstract]

ACCOUNTS RECEIVABLE

5. ACCOUNTS RECEIVABLE

Credit is extended based upon an evaluation of the customer’s financial condition and while collateral is not required, the Company often receives surety bonds that guarantee payment.  Credit terms are consistent with industry standards and practices.  Trade accounts receivable from continuing operations at September 30, 2014 and December 31, 2013 have been reduced by an allowance for doubtful accounts of $1,125 and $1,099, respectively.

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2014

Goodwill and Other Intangible Assets [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

4.  GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying amount of goodwill at September 30, 2014 and December 31, 2013 was $59,603 and $57,781, respectively.

The components of the Company’s goodwill by reporting segment are as follows:

		September 30,		December 31,
		2014		2013
Rail Products	$	38,026	$	38,026
Construction Products		5,033		3,211
Tubular Products		16,544		16,544
	$	59,603	$	57,781

The Company performs goodwill impairment tests at least annually. Qualitative factors are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test on an interim measurement date. No goodwill impairment test was required in connection with these evaluations for the nine months ended September 30, 2014. The Company performs its annual evaluation of the carrying value of its goodwill during the fourth quarter.

As of September 30, 2014, gross identified intangible assets of $44,455 are attributable to the Company’s Rail Products segment, $3,178 are attributable to the Construction Products segment, and $14,682 are attributable to the Tubular Products segment.  As of December 31, 2013, gross identified intangible assets of $44,455 are attributable to the Company’s Rail Products segment, $1,830 are attributable to the Construction Products segment, and $14,682 are attributable to the Tubular Products segment. 

The components of the Company’s intangible assets are as follows:

	September 30, 2014
	Weighted Average		Gross				Net
	Amortization Period		Carrying		Accumulated		Carrying
	In Years		Value		Amortization		Amount
Non-compete agreements	5	$	2,984	$	(552)	$	2,432
Patents	10		639		(274)		365
Customer relationships	23		20,484		(4,378)		16,106
Supplier relationships	5		350		(252)		98
Trademarks and trade names	16		7,616		(1,714)		5,902
Technology	15		30,242		(5,356)		24,886
		$	62,315	$	(12,526)	$	49,789

	December 31, 2013
	Weighted Average		Gross				Net
	Amortization Period		Carrying		Accumulated		Carrying
	In Years		Value		Amortization		Amount
Non-compete agreements	5	$	2,860	$	(117)	$	2,743
Patents	10		639		(201)		438
Customer relationships	23		19,960		(3,575)		16,385
Supplier relationships	5		350		(213)		137
Trademarks and trade names	16		7,003		(1,334)		5,669
Technology	15		30,155		(3,681)		26,474
		$	60,967	$	(9,121)	$	51,846

Intangible assets are amortized over their useful lives ranging from 5 to 25 years, with a total weighted average amortization period of approximately 17 years.  Amortization expense from continuing operations for the three-month periods ended September 30, 2014 and 2013 was $1,191 and $701, respectively. Amortization expense from continuing operations for the nine-month periods ended September 30, 2014 and 2013 was $3,504 and $2,102, respectively.

Estimated amortization expense from continuing operations for the remainder of 2014 and the years 2015 and thereafter is as follows:

		Amortization Expense
2014	$	1,190
2015		4,502
2016		4,328
2017		4,329
2018		4,182
2019 and thereafter		31,258
	$	49,789

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Income Taxes

9 Months Ended

Sep. 30, 2014

Income Taxes [Abstract]

INCOME TAXES

16. INCOME TAXES

The Company’s effective income tax rate from continuing operations for the three and nine months ended September 30, 2014 was 34.2% and 33.3%, respectively and 30.2% and 32.4% for the three and nine months ended September 30, 2013, respectively. The Company’s effective income tax rate for the three and nine months ended September 30, 2014 differed from the federal statutory rate of 35% due to state income taxes, U.S. domestic production activities deductions and operations in foreign jurisdictions with lower statutory tax rates.

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

Stock-based Compensation [Abstract]

STOCK-BASED COMPENSATION

12. STOCK-BASED COMPENSATION

The Company applies the provisions of FASB ASC 718, “Compensation – Stock Compensation,” to account for the Company’s share-based compensation.  Share-based compensation cost is measured at the grant date based on the calculated fair value of the award and is recognized over the employees’ requisite service period.  The Company recorded stock compensation expense of $604 and $437 for the three-month periods ended September 30, 2014 and 2013, respectively, related to restricted stock awards and performance unit awards. Stock compensation expense of $2,403 and $1,528 was recorded for the nine-month periods ended September 30, 2014 and 2013, respectively. As of September 30, 2014, unrecognized compensation expense for awards the Company expects to vest approximated $3,469. The Company will recognize this expense over the upcoming 3.4 year period through February 2018.

Shares issued as a result of vested stock-based compensation generally will be from previously issued shares which have been reacquired by the Company and held as Treasury shares or authorized but previously unissued common stock.

The excess income tax benefit realized for the tax deduction from stock-based compensation approximated $283 and $192for the nine months ended September 30, 2014 and 2013, respectively.  This excess income tax benefit is included in cash flows from financing activities in the Condensed Consolidated Statements of Cash Flows.

Stock Option Awards

A summary of the current year option activity as of September 30, 2014 is presented below.

				Weighted		Aggregate
			Weighted	Average		Intrinsic
			Average	Remaining		Value
			Exercise	Contractual		(Dollars in
	Shares		Price	Term		thousands)
Outstanding and Exercisable at January 1, 2014	18,750	$	10.64	1.3
Granted	-		-	-
Canceled	-		-	-
Exercised	(11,250)		11.67	-
Outstanding and Exercisable at September 30, 2014	7,500	$	9.08	0.6	$	276

At September 30, 2014, common stock options outstanding and exercisable under the Company’s equity plans had option prices ranging from $8.97 to $9.29, with a weighted average exercise price of $9.08.  At September 30, 2013, common stock options outstanding and exercisable under the Company’s equity plans had option prices ranging from $7.81 to $14.77, with a weighted average exercise price of $10.64 per share.

The total intrinsic value of stock options outstanding and exercisable at September 30, 2013 was $658.

The weighted average remaining contractual life of the stock options outstanding at September 30, 2014 and 2013 was 0.6 and 1.5 years, respectively.

There were no stock options exercised during the three-month period ended September 30, 2014. There were 11,250 stock options with a weighted average exercise price per share of $11.67 exercised during the nine-month period ended September 30, 2014. There were 3,750 stock options exercised during the three and nine-month periods ending September 30, 2013 with an average exercise price of $9.30.

Restricted Stock Awards and Performance Unit Awards

Under the amended and restated 2006 Omnibus Plan, the Company grants eligible employees Restricted Stock and Performance Unit Awards. The forfeitable Restricted Stock Awards generally time-vest after a four year holding period, unless indicated otherwise by the underlying Restricted Stock Agreement. Performance Unit Awards are offered annually under separate three-year long-term incentive programs. Performance units are subject to forfeiture and will be converted into common stock of the Company based upon the Company’s performance relative to performance measures and conversion multiples as defined in the underlying program. If the Company’s estimate of the number of Performance Stock Awards expected to vest changes in a subsequent accounting period, cumulative compensation expense could increase or decrease. The change will be recognized in the current period for the vested shares and would change future expense over the remaining vesting period.

The following table summarizes the Restricted Stock Award and Performance Unit Award activity for the period ended September 30, 2014:

				Weighted
				Average
	Restricted	Performance		Grant
	Stock	Stock		Date
	Units	Units		Fair Value
Outstanding at January 1, 2014	129,726	61,651	$	34.00
Granted	19,051	34,652		44.07
Vested	(36,302)	(13,588)		33.96
Adjustment for incentive awards expected to vest	-	(7,845)		43.59
Canceled	-	(2,880)		44.13
Outstanding at September 30, 2014	112,475	71,990	$	36.38

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Deferred Revenue

9 Months Ended

Sep. 30, 2014

Deferred Revenue [Abstract]

DEFERRED REVENUE

8. DEFERRED REVENUE

Deferred revenue of $9,810 and $5,715 as of September 30, 2014 and December 31, 2013, respectively, consists of customer payments received for which the revenue recognition criteria have not yet been met as well as billings in excess of costs on percentage of completion projects.  Advanced payments from customers typically relate to contracts that the Company has significantly fulfilled its obligations and the customers have paid, but due to the Company’s continuing involvement with the material, revenue is precluded from being recognized until title passes to the customer.

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Stock-Based Compensation (Restricted Stock and Performance Unit Awards) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Shares, Beginning Balance, Weighted Average Grant Date Fair Value	$ 34.00
Granted, Weighted Average Grant Date Fair Value	$ 44.07
Vested, Weighted Average Grant Date Fair Value	$ 33.96
Adjustment for incentive awards expected to vest, Weighted Average Grant Date Fair Value	$ 43.59
Canceled, Weighted Average Grant Date Fair Value	$ 44.13
Nonvested Shares, Ending Balance, Weighted Average Grant Date Fair Value	$ 36.38
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Shares, Outstanding, Beginning Balance	129,726
Granted	19,051
Vested	(36,302)
Nonvested Shares, Outstanding, Ending Balance	112,475
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Shares, Outstanding, Beginning Balance	61,651
Granted	34,652
Vested	(13,588)
Adjustment for incentive awards expected to vest	(7,845)
Canceled	(2,880)
Nonvested Shares, Outstanding, Ending Balance	71,990

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Inventories

9 Months Ended

Sep. 30, 2014

Inventories [Abstract]

INVENTORIES

6. INVENTORIES

Inventories of continuing operations of the Company at September 30, 2014 and December 31, 2013 are summarized in the following table:

		September 30,		December 31,
		2014		2013
Finished goods	$	65,756	$	55,166
Work-in-process		12,186		11,332
Raw materials		21,380		19,485
Total inventories at current costs		99,322		85,983
Less: LIFO reserve		(8,527)		(9,027)
	$	90,795	$	76,956

Inventories of the Company’s continuing operations are generally valued at the lower of last-in, first-out (LIFO) cost or market.  Other inventories of the Company are valued at average cost or market, whichever is lower.  An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels and costs at that time.  Interim LIFO calculations are based on management’s estimates of expected year-end levels and costs.

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Investments

9 Months Ended

Sep. 30, 2014

Investments [Abstract]

INVESTMENTS

7. INVESTMENTS

The Company is a member of a joint venture, LB Pipe & Coupling Products, LLC (LB Pipe JV), in which it maintains a 45% ownership interest.  The LB Pipe JV manufactures, markets, and sells various precision coupling products for the energy, utility, and construction markets and is scheduled to terminate on June 30, 2019. 

Under applicable guidance for variable interest entities in ASC 810, “Consolidation,” the Company determined that the LB Pipe JV is a variable interest entity. The Company concluded that it is not the primary beneficiary of the variable interest entity, as the Company does not have a controlling financial interest and does not have the power to direct the activities that most significantly impact the economic performance of the LB Pipe JV. Accordingly, the Company concluded that the equity method of accounting remains appropriate.

As of September 30, 2014 and December 31, 2013, the Company had a nonconsolidated equity method investment of $5,283 and $5,090, respectively, in the LB Pipe JV and other investments totaling $82 as of September 30, 2014.

The Company recorded equity in the income of the LB Pipe JV of approximately $477 and $296 for the three months ended September 30, 2014 and 2013, respectively. For the nine months ended September 30, 2014 and 2013, the Company recorded equity in the income of the LB Pipe JV of approximately $823 and $892, respectively.  During each of the three months ended September 30, 2014 and 2013 the Company received cash distributions of $90. Cash distributions of $630 and $558 were received for the nine months ended September 30, 2014 and 2013, respectively. There were no changes to the Company’s 45% ownership interest as a result of the proportional distribution.

The Company’s exposure to loss results from its capital contributions, net of the Company’s share of the LB Pipe JV’s income or loss, and its net investment in the direct financing lease covering the facility used by the LB Pipe JV for its operations.  The carrying amounts with the maximum exposure to loss of the Company at September 30, 2014 and December 31, 2013, respectively, are as follows:

		September 30,		December 31,
		2014		2013
LB Pipe JV equity method investment	$	5,283	$	5,090
Net investment in direct financing lease		1,144		1,224
	$	6,427	$	6,314

The Company is leasing five acres of land and two facilities to the LB Pipe JV through June 30, 2019, with a 5.5 year renewal period.  In November 2012, the Company executed the first amendment to its lease with the LB Pipe JV. The amendment included the addition of a second facility built by the Company that is now leased to the LB Pipe JV. The current monthly lease payments approximate $17, with a balloon payment of approximately $488, which is required to be paid either at the termination of the lease, allocated over the renewal period, or during the initial term of the lease.  This lease qualifies as a direct financing lease under the applicable guidance in ASC 840-30, “Leases.” The Company maintained a net investment in this direct financing lease of approximately $1,144 and $1,224 at September 30, 2014 and December 31, 2013, respectively.

The following is a schedule of the direct financing minimum lease payments for the remainder of 2014 and the years 2015 and thereafter:

		Minimum Lease Payments
2014	$	34
2015		122
2016		131
2017		140
2018		150
2019 and thereafter		567
	$	1,144

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Borrowings

9 Months Ended

Sep. 30, 2014

Borrowings [Abstract]

BORROWINGS

9. BORROWINGS

United States

On September 23, 2014, the Company, its domestic subsidiaries, and certain of its Canadian subsidiaries entered into an amended and restated $200,000 Revolving Credit Facility Credit Agreement (“Amended Credit Agreement”) with PNC Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A., and Citizens Bank of Pennsylvania.  This Amended Credit Agreement modifies the prior revolving credit facility which had a maximum credit line of $125,000.  The Amended Credit Agreement provides for a five-year, unsecured revolving credit facility that permits borrowing up to $200,000 for the U.S. borrowers and a sublimit of the equivalent of $25,000 U.S. dollars that is available to the Canadian borrowers.  The Amended Credit Agreement also modifies the accordion feature in the prior revolving credit facility which permitted a maximum increase of $50,000. The Amended Credit Agreement’s accordion feature permits the Company to increase the available revolving borrowings under the facility by up to an additional $100,000 subject to the Company’s receipt of increased commitments from existing lenders or new commitments from new lenders and to certain conditions being satisfied. The Amended Credit Agreement also increases the sublimit for the issuance of trade and standby letters of credit from $20,000 to $30,000.

Borrowings under the Amended Credit Agreement will bear interest at rates based upon either the base rate or Euro-rate plus applicable margins.  Applicable margins are dictated by the ratio of the Company’s indebtedness less cash on hand to the Company’s consolidated EBITDA, as defined in the underlying Amended Credit Agreement.  The base rate is the highest of (a) PNC Bank’s prime rate, (b) the Federal Funds Rate plus 0.50% or (c) the daily Euro-rate (as defined in the Amended Credit Agreement) plus 1.00%.  The base rate and Euro-rate spreads range from 0.00% to 1.00% and 1.00% to 2.00%, respectively.

The Amended Credit Agreement includes two financial covenants:  (a) Leverage Ratio, defined as the Company’s indebtedness less cash on hand, in excess of $15,000, divided by the Company’s consolidated EBITDA, which must not exceed 3.25 to 1.00 and (b) Minimum Interest Coverage, defined as consolidated EBITDA less capital expenditures divided by consolidated interest expense, which must be no less than 3.00 to 1.00.

The Amended Credit Agreement permits the Company to pay dividends, distributions, and make redemptions with respect to its stock provided no event of default or potential default (as defined in the Amended Credit Agreement) has occurred prior to or after giving effect to the dividend, distribution, or redemption.  Dividends, distributions, and redemptions are capped at $25,000 per year when funds are drawn on the facility.  If no drawings on the facility exist, dividends, distributions, and redemptions in excess of $25,000 per year are subjected to a limitation of $75,000 in the aggregate.  The $75,000 aggregate limitation also permits certain loans, investments, and acquisitions.

Other restrictions exist at all times including, but not limited to, limitation of the Company’s sale of assets, other indebtedness incurred by either the borrowers or the non-borrower subsidiaries of the Company, guarantees, and liens.

As of September 30, 2014, the Company was in compliance with the Amended Credit Agreement’s covenants.

The Company had no outstanding borrowings under the revolving credit facility at September 30, 2014 or December 31, 2013 and had available borrowing capacity of $199,287 at September 30, 2014.

Letters of Credit

At September 30, 2014, the Company had outstanding letters of credit of approximately $713.

United Kingdom

A subsidiary of the Company has a working capital facility with NatWest Bank for its United Kingdom operations which includes an overdraft availability of £1,500 pounds sterling (approximately $2,432 at September 30, 2014).  This credit facility supports the subsidiary’s working capital requirements and is collateralized by substantially all of the assets of its United Kingdom operations.  The interest rate on this facility is the financial institution’s base rate plus 1.50%. Outstanding performance bonds reduce availability under this credit facility.  The subsidiary of the Company had no outstanding borrowings under this credit facility as of September 30, 2014.  There was approximately $31 and $60 in outstanding guarantees (as defined in the underlying agreement) at September 30, 2014 and December 31, 2013, respectively.  This credit facility was renewed effective September 29, 2014 with no significant changes to the underlying terms or conditions in the facility.

The United Kingdom loan agreements contain certain financial covenants that require that subsidiary to maintain senior interest and cash flow coverage ratios.The subsidiary was in compliance with these financial covenants as of September 30, 2014.  The subsidiary had available borrowing capacity of $2,401 at September 30, 2014.

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Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 66,143	$ 51,223
Domestic money market funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	36,386	18,276
Non domestic bank certificates of deposit [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	29,757	32,947
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	66,143	51,223
Fair Value, Inputs, Level 1 [Member] | Domestic money market funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	36,386	18,276
Fair Value, Inputs, Level 1 [Member] | Non domestic bank certificates of deposit [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 29,757	$ 32,947

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Commitments and Contingent Liabilities (Schedule of Product Warranty Liability) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Commitments and Contingent Liabilities [Abstract]
Balance, Beginning	$ 7,483
Additions to warranty liability	5,758
Warranty liability utilized	(4,631)
Balance, Ending	$ 8,610

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Retirement Plans (Defined Contribution Plans) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Cost Recognized	$ 776	$ 585	$ 2,082	$ 1,769
Salaried Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Cost Recognized	672	478	1,751	1,422
Union Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Cost Recognized	20	18	59	53
Montreal Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Cost Recognized	20	28	65	88
United Kingdom Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Cost Recognized	32	27	100	95
Burnaby Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Cost Recognized	$ 32	$ 34	$ 107	$ 111

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Investments (Tables)

9 Months Ended

Sep. 30, 2014

Investments [Abstract]

Schedule of Variable Interest Entities [Table Text Block]

		September 30,		December 31,
		2014		2013
LB Pipe JV equity method investment	$	5,283	$	5,090
Net investment in direct financing lease		1,144		1,224
	$	6,427	$	6,314

Schedule of Direct Financing Future Minimum Lease Payments for Capital Leases [Table Text Block]

		Minimum Lease Payments
2014	$	34
2015		122
2016		131
2017		140
2018		150
2019 and thereafter		567
	$	1,144

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Investments (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Schedule of Equity Method Investments [Line Items]
Equity Investments	$ 5,365		$ 5,365		$ 5,090
Equity in Income/(Loss) of Nonconsolidated Investment	477	296	823	892
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital			630	558
Capital Leases, Monthly Rent			17
Capital Leases Balloon Payment In Direct Financing Leases	488		488
Capital Leases, Net Investment in Direct Financing Leases	1,144		1,144		1,224
LB Pipe & Coupling Products, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Investments	5,283		5,283		5,090
Equity Method Investment, Ownership Percentage	45.00%		45.00%
Equity Method Investment, Description of Principal Activities			The Company is a member of a joint venture, LB Pipe & Coupling Products, LLC (LB Pipe JV), in which it maintains a 45% ownership interest. The LB Pipe JV manufactures, markets, and sells various precision coupling products for the energy, utility, and construction markets and is scheduled to terminate on June 30, 2019.
Equity in Income/(Loss) of Nonconsolidated Investment	477	296	823	892
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital	90	90	630	558
Other Investments [Member]
Schedule of Equity Method Investments [Line Items]
Equity Investments	$ 82		$ 82
Capital Leased Land [Member]
Schedule of Equity Method Investments [Line Items]
Area of Land	5		5
Capital Leased Assets, Number of Units	2		2
Capital Lease Length Of Renewal Term			5 years 6 months
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | LB Pipe & Coupling Products, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Variable Interest Entity, Methodology for Determining Whether Entity is Primary Beneficiary			Under applicable guidance for variable interest entities in ASC 810, "Consolidation," the Company determined that the LB Pipe JV is a variable interest entity. The Company concluded that it is not the primary beneficiary of the variable interest entity, as the Company does not have a controlling financial interest and does not have the power to direct the activities that most significantly impact the economic performance of the LB Pipe JV. Accordingly, the Company concluded that the equity method of accounting remains appropriate.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

14. FAIR VALUE MEASUREMENTS

The Company determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s own assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below.

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The Company has an established process for determining fair value for its financial assets and liabilities, principally cash and cash equivalents and at times foreign currency exchange contracts. Fair value is based on quoted market prices, where available. If quoted market prices are not available, fair value is based on assumptions that use as inputs market-based parameters. The following sections describe the valuation methodologies used by the Company to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Where appropriate the description includes details of the key inputs to the valuations and any significant assumptions.

Cash equivalents.  Included within “Cash and cash equivalents” are investments in money market funds with various underlying securities all of which maintain AAA credit ratings.  Also included within cash equivalents are our highly liquid investments in non-domestic bank term deposits.  The Company uses quoted market prices to determine the fair value of these investments and they are classified in Level 1 of the fair value hierarchy.  The carrying amounts approximate fair value because of the short maturity of the instruments.

The following assets and liabilities of the Company were measured at fair value on a recurring basis subject to the disclosure requirements of ASC Topic 820 at September 30, 2014 and December 31, 2013:

		Fair Value Measurements at Reporting Date Using								Fair Value Measurements at Reporting Date Using
		September 30, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Domestic money market funds	$	36,386	$	36,386	$	-	$	-	$	18,276	$	18,276	$	-	$	-
Non domestic bank term deposits		29,757		29,757		-		-		32,947		32,947		-		-
Total Assets	$	66,143	$	66,143	$	-	$	-	$	51,223	$	51,223	$	-	$	-

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Inventories (Policies)

9 Months Ended

Sep. 30, 2014

Inventories [Abstract]

Inventory, Policy [Policy Text Block]

Inventories of the Company’s continuing operations are generally valued at the lower of last-in, first-out (LIFO) cost or market.  Other inventories of the Company are valued at average cost or market, whichever is lower.  An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels and costs at that time.  Interim LIFO calculations are based on management’s estimates of expected year-end levels and costs.

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Accounts Receivable (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Accounts Receivable [Abstract]
Allowance for Doubtful Accounts Receivable	$ 1,125	$ 1,099

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Business Segments (Reconciliation of Significant Reconciling Items) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Segment Reporting Information [Line Items]
Net sales	$ 167,797	$ 162,248	$ 446,043	$ 441,505
Segment Profit	16,445	13,553	36,496	35,261
Rail Products Segment [Member]
Segment Reporting Information [Line Items]
Net sales	102,105	105,552	283,085	277,843
Segment Profit	11,533	9,713	23,685	21,749
Construction Products Segment [Member]
Segment Reporting Information [Line Items]
Net sales	49,907	49,320	119,100	129,828
Segment Profit	3,251	2,855	7,838	5,373
Tubular Products Segments [Member]
Segment Reporting Information [Line Items]
Net sales	15,785	7,376	43,858	33,834
Segment Profit	$ 1,661	$ 985	$ 4,973	$ 8,139

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Consolidated Statements of Comprehensive Income
Net income	$ 9,116	$ 9,793	$ 19,627	$ 22,015
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment	(2,693)	1,480	(2,648)	(1,790)
Reclassification of pension liability adjustments to earnings, net of tax expense of $24, $36 and $71, $109	47	72	137	211
Other comprehensive (loss) income, net of tax	(2,646)	1,552	(2,511)	(1,579)
Comprehensive income	$ 6,470	$ 11,345	$ 17,116	$ 20,436

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Acquisitions

9 Months Ended

Sep. 30, 2014

Acquisitions [Abstract]

ACQUISITION

3. ACQUISITIONS

Carr Concrete

On July 7, 2014, the Company entered into an asset purchase agreement to acquire and assume substantially all of the assets and liabilities of Carr Concrete Corporation (Carr) for $12,491, inclusive of an accrued $200 post-closing purchase price adjustment. Carr is a provider of pre-stressed and precast concrete products located in Waverly, WV and the transaction was funded with cash on hand. Included within the purchase price is $1,000 which will be held in escrow to satisfy any indemnity claims under the purchase agreement. The results of Carr’s operations for the period July 7, 2014 through September 30, 2014 are included in our Construction Products segment and were not material to the periods presented.  

Ball Winch

During the prior year, the Company acquired substantially all of the assets and liabilities of Ball Winch, LLC (Ball Winch). Cash payments totaling $37,500 were made during 2013 and a post-closing working capital adjustment of $495 was paid in February 2014 resulting in a total purchase price of $37,995. Included within the purchase price was $3,300 which is held in escrow to satisfy any indemnity claims under the purchase agreement.The results of operations for Ball Winch are included in the Company’s Tubular Products segment for the nine months ended September 30, 2014.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition:

		July 7, 2014		November 7, 2013
Allocation of Purchase Price		Carr Fair Value		Ball Winch Fair Value
Current assets	$	3,204	$	1,857
Other assets		145		64
Property, plant, and equipment		7,648		5,555
Goodwill		1,822		16,544
Other intangibles		1,348		14,682
Current liabilities		(1,676)		(707)
Total	$	12,491	$	37,995

The following table summarizes the estimates of the fair values and amortizable lives of the identifiable intangible assets acquired:

Intangible Asset		July 7, 2014 Carr Fair Value		November 7, 2013 Ball Winch Fair Value
Trade name	$	613	$	723
Technology and customer relationships		611		11,129
Non-competition agreements		124		2,830
Total identified intangible assets	$	1,348	$	14,682

The Carr purchase price allocation is based upon a preliminary valuation. If new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement recognized for assets or liabilities assumed, the Company will retrospectively adjust the amounts recognized as of the acquisition date.

The Company has concluded that intangible assets and goodwill values resulting from the transactions will be deductible for tax purposes.

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Stock-Based Compensation (Narrative) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 604	$ 437	$ 2,403	$ 1,528
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	3,469		3,469
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			3 years 4 months 24 days
Excess Tax Benefit from Share-based Compensation, Financing Activities			283	192
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 276	$ 658	$ 276	$ 658
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			7 months 6 days	1 year 6 months	1 year 3 months 18 days
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price			$ 11.67	$ 9.30
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value			$ 33.96
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 44.07
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price	$ 9.08		$ 9.08		$ 10.64
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0		11,250	3,750
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			19,051
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			36,302
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			34,652
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			13,588
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price	$ 8.97	$ 7.81	$ 8.97	$ 7.81
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price	$ 9.29	$ 14.77	$ 9.29	$ 14.77
Weighted Average [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price	$ 9.08	$ 10.64	$ 9.08	$ 10.64

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Deferred Revenue (Policy)

9 Months Ended

Sep. 30, 2014

Deferred Revenue [Abstract]

Deferred Revenue [Policy Text Block]

Advanced payments from customers typically relate to contracts that the Company has significantly fulfilled its obligations and the customers have paid, but due to the Company’s continuing involvement with the material, revenue is precluded from being recognized until title passes to the customer.

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Measurements [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

		Fair Value Measurements at Reporting Date Using								Fair Value Measurements at Reporting Date Using
		September 30, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Domestic money market funds	$	36,386	$	36,386	$	-	$	-	$	18,276	$	18,276	$	-	$	-
Non domestic bank term deposits		29,757		29,757		-		-		32,947		32,947		-		-
Total Assets	$	66,143	$	66,143	$	-	$	-	$	51,223	$	51,223	$	-	$	-

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Retirement Plans

9 Months Ended

Sep. 30, 2014

Retirement Plans [Abstract]

RETIREMENT PLANS

13. RETIREMENT PLANS

Retirement Plans

The Company has five retirement plans which cover its hourly and salaried employees in the United States: three defined benefit plans (one active / two frozen) and two defined contribution plans.  Employees are eligible to participate in the appropriate plan based on employment classification.  The Company's funding to the defined benefit and defined contribution plans are governed by the Employee Retirement Income Security Act of 1974 (ERISA), applicable plan policy and investment guidelines.  The Company’s policy is to contribute at least the minimum in accordance with the funding standards of ERISA.

The Company’s subsidiary, L.B. Foster Rail Technologies, Inc. (Rail Technologies), maintains two defined contribution plans for its employees in Canada, as well as a post-retirement benefit plan.  In the United Kingdom, Rail Technologies maintains both a defined contribution plan and a defined benefit plan. 

United States Defined Benefit Plans

Net periodic pension costs for the United States defined benefit pension plans for the three and nine-month periods ended September 30, 2014 and 2013 are as follows:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Service cost	$	5	$	8	$	17	$	25
Interest cost		193		177		578		530
Expected return on plan assets		(242)		(214)		(726)		(642)
Recognized net actuarial loss		16		53		49		159
Net periodic pension (income) cost	$	(28)	$	24	$	(82)	$	72

The Company expects to contribute approximately $408 to its United States defined benefit plans in 2014.  Contributions of approximately $300 were made during the nine months ended September 30, 2014.

United Kingdom Defined Benefit Plans

Net periodic pension costs for the United Kingdom defined benefit pension plan for the three and nine-month periods ended September 30, 2014 and 2013 are as follows:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Interest cost	$	97	$	85	$	297	$	255
Expected return on plan assets		(92)		(73)		(281)		(219)
Amortization of transition amount		(7)		(12)		(21)		(36)
Recognized net actuarial loss		49		57		149		171
Net periodic pension cost	$	47	$	57	$	144	$	171

United Kingdom regulations require trustees to adopt a prudent approach to funding required contributions to defined benefit pension plans. Employer contributions of $292 are anticipated to the United Kingdom L.B. Foster Rail Technologies, Inc. pension plan during 2014.  For the nine months ended September 30, 2014, the Company contributed approximately $219 to the plan. 

Defined Contribution Plans

The Company sponsors five defined contribution plans for hourly and salaried employees across our domestic and international facilities. The following table summarizes the expense associated with the contributions made to these plans.

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Salaried Plan	$	672	$	478	$	1,751	$	1,422
Union Plan		20		18		59		53
Montreal Plan		20		28		65		88
United Kingdom Plan		32		27		100		95
Burnaby Plan		32		34		107		111
	$	776	$	585	$	2,082	$	1,769