Segment and Geographic Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment and Geographic Information

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 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):

	2015 (1)			2014 (2)			2013 (3)
Revenues:
Infrastructure Solutions	$	556,234		$	567,205		$	529,301
Corrosion Protection	437,921			458,409			453,886
Energy Services	339,415			305,807			108,233
Total revenues	$	1,333,570		$	1,331,421		$	1,091,420
Operating income (loss):
Infrastructure Solutions	$	46,867		$	(6,194	)	$	28,487
Corrosion Protection	(1,771		)	(31,010		)	37,253
Energy Services	(25,150		)	17,392			1,142
Total operating income (loss)	$	19,946		$	(19,812	)	$	66,882
Total assets:
Infrastructure Solutions	$	508,817		$	485,785		$	514,778
Corrosion Protection	489,519			506,659			547,280
Energy Services	183,763			197,858			190,688
Corporate	55,148			105,371			116,316
Assets held for sale	21,060			—			—
Discontinued operations	—			—			8,356
Total assets	$	1,258,307		$	1,295,673		$	1,377,418
Capital expenditures:
Infrastructure Solutions	$	7,657		$	13,096		$	8,828
Corrosion Protection	17,226			12,107			14,399
Energy Services	2,202			3,720			968
Corporate	2,369			3,976			1,890
Total capital expenditures	$	29,454		$	32,899		$	26,085
Depreciation and amortization:
Infrastructure Solutions	$	14,836		$	15,726		$	16,552
Corrosion Protection	18,834			19,259			18,736
Energy Services	7,641			7,004			3,218
Corporate	2,480			2,323			1,823
Total depreciation and amortization	$	43,791		$	44,312		$	40,329

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⁽¹⁾  Results include: (i) $43.5 million of goodwill impairment charges (see Note 2); (ii) $1.0 million of restructuring charges (see Note 3); and (iii) $1.9 million of costs incurred related to the acquisitions of Underground Solutions, Schultz and other acquisition targets. The Company recorded these charges under “Goodwill impairment”, “Restructuring charges” and “Acquisition-related expenses”, respectively, on its Consolidated Statements of Operations.

⁽²⁾  Results include: (i) $51.5 million of goodwill impairment charges (see Note 2); (ii) $12.1 million of definite-lived intangible asset impairment charges (see Note 2); (iii) $0.7 million of restructuring charges (see Note 3); and (iv) $1.4 million of costs incurred related to the acquisitions of Brinderson, Fyfe Asia and other acquisition targets. The Company recorded these charges under “Goodwill impairment”, “Definite-lived intangible asset impairment”, “Restructuring charges” and “Acquisition-related expenses”, respectively, on its Consolidated Statements of Operations.

⁽³⁾  Results include $5.8 million of costs incurred related to the acquisition of Brinderson and other acquisition targets. The Company recorded these costs under “Acquisition-related expenses” on its Consolidated Statements of Operations.

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

	2015			2014			2013
Revenues: (1)
United States	$	965,957		$	926,834		$	672,192
Canada	174,827			202,806			179,236
Europe	56,474			85,614			90,646
Other foreign	136,312			116,167			149,346
Total revenues	$	1,333,570		$	1,331,421		$	1,091,420
Operating income (loss):
United States	$	(18,959	)	$	(45,945	)	$	24,977
Canada	27,126			36,883			28,955
Europe	3,217			1,862			6,276
Other foreign	8,562			(12,612		)	6,674
Total operating income	$	19,946		$	(19,812	)	$	66,882
Long-lived assets: (1)(2)
United States	$	128,414		$	135,898		$	154,367
Canada	9,872			25,610			28,539
Europe	7,268			8,984			10,007
Other foreign	9,189			8,429			12,806
Total long-lived assets	$	154,743		$	178,921		$	205,719

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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, 2015, 2014 and 2013 do not include intangible assets, goodwill or deferred tax assets.