Note 12 - Segment and Geographic Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT AND GEOGRAPHIC INFORMATION

The Company operates in three distinct markets: energy and mining; water and wastewater; and commercial and structural services. Effective in the fourth quarter of 2014, the Company realigned its existing three operating segments, which are also its reportable segments: Infrastructure Solutions; Corrosion Protection; and Energy Services. The Company’s operating segments correspond to its management organizational structure. Each new operating segment has a president who reports to the chief operating decision manager (“CODM”). The operating results and financial information reported by each of the new segments are evaluated separately, regularly reviewed and used by the CODM to evaluate segment performance, allocate resources and determine management incentive compensation. The realignment did not change the composition of the Company’s reporting units for goodwill impairment testing purposes. The current and all future SEC filings will reflect these new reportable segments, unless and until such time as there is a subsequent change in the Company’s reportable segments.

The year ended December 31, 2014 results include $51.5 million of goodwill impairment charges (see Note 2), $12.1 million of definite-lived intangible asset impairment charges (see Note 2) and $0.7 million for restructuring charges (see Note 3). The Company recorded these charges under “Goodwill impairment”, “Definite-lived intangible asset impairment” and “Restructuring charges”, respectively, on its Consolidated Statements of Operations. Additionally, the year ended December 31, 2014 results include $1.4 million for costs incurred related to the Company’s acquisition of Brinderson, Fyfe Asia and other acquisition targets. The year ended December 31, 2013 results include $5.8 million for costs incurred related to the acquisition of Brinderson and other acquisition targets. The year ended December 31, 2012 results include $3.1 million for costs incurred related to the acquisitions of Fyfe LA and Fyfe Asia and other acquisition targets. The Company recorded these costs under “Acquisition-related expenses” on its Consolidated Statements of Operations.

The following disaggregated financial results have been prepared using a management approach that is consistent with the basis and manner with which management internally disaggregates financial information for the purpose of making internal operating decisions. Financial results for discontinued operations have been removed for all periods presented. The Company evaluates performance based on stand-alone operating income (loss).

Financial information by segment was as follows (in thousands):

	2014			2013		2012
Revenues:
Infrastructure Solutions	$	567,205		$	529,301	$	502,856
Corrosion Protection	458,409			453,886		513,975
Energy Services	305,807			108,233		—
Total revenues	$	1,331,421		$	1,091,420	$	1,016,831
Operating income (loss):
Infrastructure Solutions	$	(6,194	)	$	28,487	$	21,809
Corrosion Protection	(31,010		)	37,253		59,994
Energy Services	17,392			1,142		—
Total operating income (loss)	$	(19,812	)	$	66,882	$	81,803
Total assets:
Infrastructure Solutions	$	485,785		$	514,778	$	531,124
Corrosion Protection	506,659			547,280		569,109
Energy Services	197,858			190,688		—
Corporate	105,371			116,316		101,851
Discontinued Operations	—			8,356		15,810
Total assets	$	1,295,673		$	1,377,418	$	1,217,894
Capital expenditures:
Infrastructure Solutions	$	13,096		$	8,828	$	7,848
Corrosion Protection	12,107			14,399		34,796
Energy Services	3,720			968		—
Corporate	3,976			1,890		2,094
Total capital expenditures	$	32,899		$	26,085	$	44,738
Depreciation and amortization:
Infrastructure Solutions	$	15,726		$	16,552	$	17,800
Corrosion Protection	19,259			18,736		18,175
Energy Services	7,004			3,218		—
Corporate	2,323			1,823		1,683
Total depreciation and amortization	$	44,312		$	40,329	$	37,658

The following table summarizes revenues, gross profit and operating income (loss) by geographic region (in thousands):

	2014			2013		2012
Revenues: (1)
United States	$	926,834		$	672,192	$	589,027
Canada	202,806			179,236		180,283
Europe	85,614			90,646		86,883
Other foreign	116,167			149,346		160,638
Total revenues	$	1,331,421		$	1,091,420	$	1,016,831
Operating income (loss):
United States	$	(45,945	)	$	24,977	$	40,676
Canada	36,883			28,955		31,376
Europe	1,862			6,276		6,196
Other foreign	(12,612		)	6,674		3,555
Total operating income	$	(19,812	)	$	66,882	$	81,803
Long-lived assets: (1)(2)
United States	$	135,898		$	154,367	$	151,337
Canada	25,610			28,539		28,724
Europe	8,984			10,007		16,396
Other foreign	8,429			12,806		14,040
Total long-lived assets	$	178,921		$	205,719	$	210,497

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⁽¹⁾  Revenues and long-lived assets are attributed to the country of origin for the Company’s legal entities. For a significant majority of its legal entities, the country of origin relates to the country or geographic area that it services.

⁽²⁾  Long-lived assets as of December 31, 2014, 2013 and 2012 do not include intangible assets, goodwill or deferred tax assets.