Segment Reporting

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

The Company has 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 operating segment has a president who reports to the Company’s chief executive officer, who is also the chief operating decision manager (“CODM”). The operating results and financial information reported by each of the segments are evaluated separately, regularly reviewed and used by the CODM to evaluate segment performance, allocate resources and determine management incentive compensation.

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. The Company evaluates performance based on stand-alone operating income (loss).

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

	Quarters Ended June 30,						Six Months Ended June 30,
	2016 (1)			2015 (2)			2016 (3)			2015 (4)
Revenues:
Infrastructure Solutions	$	150,199		$	149,091		$	275,961		$	271,564
Corrosion Protection	94,410			106,022			186,856			207,765
Energy Services	53,077			81,983			128,777			166,933
Total revenues	$	297,686		$	337,096		$	591,594		$	646,262
Gross profit:
Infrastructure Solutions	$	39,175		$	39,031		$	68,919		$	67,646
Corrosion Protection	17,103			21,887			34,302			42,716
Energy Services	4,912			11,135			12,383			20,881
Total gross profit	$	61,190		$	72,053		$	115,604		$	131,243
Operating income (loss):
Infrastructure Solutions (5)	$	13,067		$	12,115		$	18,875		$	19,447
Corrosion Protection (6)	(2,469		)	936			(8,139		)	1,436
Energy Services (7)	(2,453		)	1,472			(6,730		)	2,765
Total operating income	8,145			14,523			4,006			23,648
Other income (expense):
Interest expense	(3,641		)	(2,989		)	(7,256		)	(6,221		)
Interest income	128			78			160			204
Other	(498		)	778			(1,471		)	(2,001		)
Total other expense	(4,011		)	(2,133		)	(8,567		)	(8,018		)
Income (loss) before taxes on income	$	4,134		$	12,390		$	(4,561	)	$	15,630

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⁽¹⁾  Results include: (i) $3.8 million of 2016 Restructuring charges (see Note 3); (ii) $0.1 million of 2014 Restructuring charges (see Note 3); (iii) $0.7 million of costs incurred related to the acquisitions of Underground Solutions, Fyfe Europe, LMJ and other acquisition targets; and (iv) inventory step up expense of $2.4 million recognized as part of the accounting for business combinations.

⁽²⁾  Results include $5.7 million of 2014 Restructuring charges (see Note 3).

⁽³⁾  Results include: (i) $13.5 million of 2016 Restructuring charges (see Note 3); (ii) $0.1 million of 2014 Restructuring expense reversals (see Note 3); (iii) $1.7 million of costs incurred related to the acquisitions of Underground Solutions, Fyfe Europe, LMJ and other acquisition targets; and (iv) inventory step up expense of $3.6 million recognized as part of the accounting for business combinations.

⁽⁴⁾  Results include: (i) $9.2 million of 2014 Restructuring charges (see Note 3); and (ii) $0.3 million of costs incurred related to the acquisition of Schultz and other acquisition targets.

⁽⁵⁾  Operating income for the quarter ended June 30, 2016 includes: (i) $1.0 million of 2016 Restructuring charges (see Note 3); (ii) $0.1 million of 2014 Restructuring charges (see Note 3); (iii) $0.7 million of costs incurred related to the acquisitions of Underground Solutions, Fyfe Europe, LMJ and other acquisition targets; and (iv) inventory step up expense of $2.4 million recognized as part of the accounting for business combinations. Operating income for the quarter ended June 30, 2015 includes $5.7 million of 2014 Restructuring charges (see Note 3).

Operating income for the six months ended June 30, 2016 includes: (i) $3.1 million of 2016 Restructuring charges (see Note 3); (ii) $0.1 million of 2014 Restructuring expense reversals (see Note 3); (iii) $1.7 million of costs incurred related to the acquisitions of Underground Solutions, Fyfe Europe, LMJ and other acquisition targets; and (iv) inventory step up expense of $3.6 million recognized as part of the accounting for business combinations. Operating income for the six months ended June 30, 2015 includes $6.5 million of 2014 Restructuring charges (see Note 3).

⁽⁶⁾  Operating loss for the quarter ended June 30, 2016 includes $1.0 million of 2016 Restructuring charges (see Note 3).

Operating loss for the six months ended June 30, 2016 includes $3.7 million of 2016 Restructuring charges (see Note 3).

⁽⁷⁾  Operating loss for the quarter ended June 30, 2016 includes $1.6 million of 2016 Restructuring charges (see Note 3).

Operating loss for the six months ended June 30, 2016 includes $6.4 million of 2016 Restructuring charges (see Note 3). Operating income for the six months ended June 30, 2015 includes $0.3 million of costs incurred related to the acquisition of Schultz and other acquisition targets.

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

	Quarters Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Revenues (1):
United States	$	227,784		$	252,834		$	451,353		$	475,975
Canada	27,333			39,400			54,952			86,052
Europe	16,101			13,646			29,922			27,763
Other foreign	26,468			31,216			55,367			56,472
Total revenues	$	297,686		$	337,096		$	591,594		$	646,262
Gross profit:
United States	$	47,791		$	54,639		$	87,652		$	92,493
Canada	5,856			8,491			11,271			20,680
Europe	3,309			3,835			6,099			8,060
Other foreign	4,234			5,088			10,582			10,010
Total gross profit	$	61,190		$	72,053		$	115,604		$	131,243
Operating income (loss):
United States	$	5,145		$	10,644		$	145		$	7,724
Canada	3,147			4,836			4,798			13,442
Europe	616			469			756			1,940
Other foreign	(763		)	(1,426		)	(1,693		)	542
Total operating income	$	8,145		$	14,523		$	4,006		$	23,648

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⁽¹⁾  Revenues 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.