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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


__________________________
(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

__________________________
(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.