Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

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. During 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 Company’s current SEC filings reflect the above named 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):

	Years Ended December 31,
	2016 (1)			2015 (2)			2014 (3)
Revenues:
Infrastructure Solutions	$	571,551		$	556,234		$	567,205
Corrosion Protection	401,469			437,921			458,409
Energy Services	248,900			339,415			305,807
Total revenues	$	1,221,920		$	1,333,570		$	1,331,421
Operating income (loss):
Infrastructure Solutions (4)	$	53,503		$	46,867		$	(6,194	)
Corrosion Protection (5)	1,809			(1,771		)	(31,010		)
Energy Services (6)	(4,486		)	(25,150		)	17,392
Total operating income (loss)	$	50,826		$	19,946		$	(19,812	)
Other income (expense):
Interest expense	$	(15,029	)	$	(16,044	)	$	(12,943	)
Interest income	166			218			633
Other	(694		)	(2,905		)	(3,853		)
Total other expense	$	(15,557	)	$	(18,731	)	$	(16,163	)
Income (loss) before taxes on income	$	35,269		$	1,215		$	(35,975	)
Total assets:
Infrastructure Solutions	$	584,425		$	508,817		$	485,785
Corrosion Protection	424,007			489,519			506,659
Energy Services	147,171			183,763			197,858
Corporate	37,979			50,854			100,831
Assets held for sale	—			21,060			—
Total assets	$	1,193,582		$	1,254,013		$	1,291,133
Capital expenditures:
Infrastructure Solutions	$	19,834		$	7,657		$	13,096
Corrosion Protection	14,393			17,226			12,107
Energy Services	2,514			2,202			3,720
Corporate	2,019			2,369			3,976
Total capital expenditures	$	38,760		$	29,454		$	32,899
Depreciation and amortization:
Infrastructure Solutions	$	17,547		$	14,836		$	15,726
Corrosion Protection	18,792			18,834			19,259
Energy Services	7,067			7,641			7,004
Corporate	3,313			2,480			2,323
Total depreciation and amortization	$	46,719		$	43,791		$	44,312

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⁽¹⁾  Results include: (i) $15.9 million of restructuring charges (see Note 3); (ii) $2.7 million of costs incurred related to the acquisitions of Underground Solutions, Fyfe Europe, LMJ, Concrete Solutions and other acquisition targets; (iii) inventory step up expense of $3.6 million recognized as part of the accounting for business combinations; and (iv) a gain of $6.6 million in connection with the settlement of two longstanding lawsuits (see Note 11).

⁽²⁾  Results include: (i) $43.5 million of goodwill impairment charges (see Note 2); (ii) $8.1 million of 2014 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.

⁽³⁾  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) $47.8 million of 2014 Restructuring charges (see Note 3); and (iv) $1.4 million of costs incurred related to the acquisition of Brinderson and other acquisition targets.

⁽⁴⁾  Operating income for 2016 includes: (i) $3.1 million of 2016 Restructuring charges (see Note 3); (ii) $0.2 million of 2014 Restructuring expense reversals (see Note 3); (iii) $2.7 million of costs incurred related to the acquisitions of Underground Solutions, Fyfe Europe, LMJ, Concrete Solutions and other acquisition targets; (iv) inventory step up expense of $3.6 million recognized as part of the accounting for business combinations; and (v) a gain of $6.6 million in connection with the settlement of two longstanding lawsuits (see Note 11). Operating income for 2015 includes $8.1 million of 2014 Restructuring charges (see Note 3) and $1.1 million of costs incurred related to the acquisition of Underground Solutions and other acquisition targets. Operating income for 2014 includes: (i) $25.6 million of 2014 Restructuring charges (see Note 3), (ii) $16.1 million of goodwill impairment charges (see Note 2); and (iii) $1.2 million of definite-lived intangible asset impairment charges (see Note 2).

⁽⁵⁾  Operating income for 2016 includes $4.6 million of 2016 Restructuring charges (see Note 3). Operating income for 2015 includes $10.0 million of goodwill impairment charges (see Note 2) and $0.5 million of acquisition related expenses. Operating income for 2014 includes: (i) $35.4 million of goodwill impairment charges (see Note 2); (ii) $10.9 million of definite-lived intangible asset impairment charges (see Note 2); (iii) $11.3 million of 2014 Restructuring charges (see Note 3); and (iv) $0.7 million of costs incurred in conjunction with potential acquisition activity.

⁽⁶⁾  Operating income for 2016 includes $8.2 million of 2016 Restructuring charges (see Note 3). Operating income for 2015 includes $33.5 million of goodwill impairment charges (see Note 2) and $0.3 million of costs incurred related to the acquisition of Schultz. Operating income for 2014 includes (i) $0.7 million of costs incurred related to the acquisition of Brinderson and (ii) $4.5 million related to proceeds received in connection with the settlement of escrow claims related to the purchase of Brinderson..

The following table summarizes revenues, operating income (loss) and long-lived assets by geographic region (in thousands):

	Years Ended December 31,
	2016		2015			2014
Revenues: (1)
United States	$	924,580	$	965,957		$	926,834
Canada	129,291		174,827			202,806
Europe	60,238		56,474			85,614
Other foreign	107,811		136,312			116,167
Total revenues	$	1,221,920	$	1,333,570		$	1,331,421
Operating income (loss):
United States	$	28,048	$	(18,959	)	$	(45,945	)
Canada	16,156		27,126			36,883
Europe	981		3,217			1,862
Other foreign	5,641		8,562			(12,612		)
Total operating income (loss)	$	50,826	$	19,946		$	(19,812	)
Long-lived assets: (1)(2)
United States	$	140,099	$	124,120		$	135,898
Canada	9,464		9,872			25,610
Europe	7,575		7,268			8,984
Other foreign	8,829		9,189			8,429
Total long-lived assets	$	165,967	$	150,449		$	178,921

__________________________

⁽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, 2016, 2015 and 2014 do not include intangible assets, goodwill or deferred tax assets.