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 segment 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), which includes acquisition and divestiture expenses, restructuring charges and an allocation of corporate-related expenses.

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



	Quarters Ended March 31,
	2018			2017
Revenues:
Infrastructure Solutions	$	134,427		$	128,868
Corrosion Protection	98,105			123,390
Energy Services	92,329			72,917
Total revenues	$	324,861		$	325,175

Gross profit:
Infrastructure Solutions	$	26,709		$	31,251
Corrosion Protection	23,576			27,963
Energy Services	11,219			8,198
Total gross profit	$	61,504		$	67,412

Operating income (loss):
Infrastructure Solutions ⁽¹⁾	$	(349	)	$	5,610
Corrosion Protection ⁽²⁾	822			7,212
Energy Services	2,708			1,311
Total operating income	3,181			14,133
Other income (expense):
Interest expense	(5,443		)	(4,047		)
Interest income	47			49
Other	(262		)	(387		)
Total other expense	(5,658		)	(4,385		)
Income (loss) before taxes on income	$	(2,477	)	$	9,748

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⁽¹⁾	Operating loss in the first quarter of 2018 includes $3.5 million of 2017 Restructuring charges (see Note 4). Operating income in the first quarter of 2017 includes $0.5 million of costs incurred primarily related to the acquisition of Environmental Techniques.


⁽²⁾	Operating income in the first quarter of 2018 includes $1.7 million of 2017 Restructuring charges (see Note 4) and $0.4 million of costs incurred primarily related to the planned divestiture of Bayou.

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



	Quarters Ended March 31,
	2018			2017
Revenues ⁽¹⁾:
United States	$	250,032		$	257,724
Canada	28,839			26,827
Europe	16,009			16,145
Other foreign	29,981			24,479
Total revenues	$	324,861		$	325,175

Gross profit:
United States	$	49,562		$	56,032
Canada	4,775			4,514
Europe	1,134			3,159
Other foreign	6,033			3,707
Total gross profit	$	61,504		$	67,412

Operating income (loss):
United States	$	4,913		$	12,517
Canada	1,153			1,460
Europe	(2,445		)	408
Other foreign	(440		)	(252		)
Total operating income	$	3,181		$	14,133

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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.