Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Accumulated Other Comprehensive Income (Loss)

The Company’s accumulated other comprehensive loss is comprised of three main components: (i) currency translation; (ii) derivatives; and (iii) gains and losses associated with the Company’s defined benefit plan in the United Kingdom (in thousands):



	September 30, 2017			December 31, 2016
Currency translation adjustments⁽¹⁾	$	(38,993	)	$	(54,863	)
Derivative hedging activity	1,445			1,004
Pension activity	390			359
Total accumulated other comprehensive loss	$	(37,158	)	$	(53,500	)

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⁽¹⁾	Due to the weakening of the U.S. dollar, there was a substantial increase during the first nine months of 2017, primarily the second quarter of 2017, with respect to certain functional currencies and their relation to the U.S. dollar, most notably the Canadian dollar, Australian dollar, British pound and euro.

Financial data for consolidated variable interest entities

Financial data for consolidated variable interest entities are summarized in the following table (in thousands):



Balance sheet data ⁽¹⁾	September 30, 2017 ⁽²⁾		December 31, 2016
Current assets	$	39,966	$	51,354
Non-current assets	25,068		25,607
Current liabilities	13,550		29,324
Non-current liabilities	26,583		28,849



	Nine Months Ended September 30,
Income statement data ⁽¹⁾	2017		2016
Revenue	$	72,916	$	35,409
Gross profit	11,704		2,713
Net income (loss) attributable to Aegion Corporation	3,071		(3,869		)

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⁽¹⁾	During the first nine months of 2017, changes were primarily driven from our joint venture in Louisiana, which continued its work on a large deepwater pipe coating and insulation project.


⁽²⁾	Amounts include $23.9 million of assets and $5.8 million of liabilities classified as held for sale relating to our pipe coating and insulation joint venture in Louisiana, Bayou Wasco Insulation, LLC. See Note 5.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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