SEGMENT AND GEOGRAPHIC INFORMATION

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 leadership that reports to 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):



	Years Ended December 31,
	2018			2017			2016
Revenues:
Infrastructure Solutions	$	604,121		$	612,154		$	571,551
Corrosion Protection	393,740			456,139			401,469
Energy Services	335,707			290,726			248,900
Total revenues	$	1,333,568		$	1,359,019		$	1,221,920

Gross profit:
Infrastructure Solutions	$	132,411		$	140,823		$	142,444
Corrosion Protection	92,968			108,240			83,269
Energy Services	41,547			35,749			28,214
Total gross profit	$	266,926		$	284,812		$	253,927

Operating income (loss):
Infrastructure Solutions ⁽¹⁾	$	23,683		$	(62,244	)	$	53,899
Corrosion Protection ⁽²⁾	(1,867		)	12,446			1,458
Energy Services ⁽³⁾	7,831			6,278			(4,566		)
Total operating income (loss)	29,647			(43,520		)	50,791
Other income (expense):
Interest expense	(17,327		)	(16,001		)	(15,029		)
Interest income	516			145			166
Other	(9,881		)	(2,201		)	(694		)
Total other expense	(26,692		)	(18,057		)	(15,557		)
Income (loss) before taxes on income	$	2,955		$	(61,577	)	$	35,234

Total assets:
Infrastructure Solutions	$	500,977		$	531,746		$	584,425
Corrosion Protection	279,106			329,848			424,007
Energy Services	163,109			152,416			147,171
Corporate	41,432			22,775			37,979
Assets held for sale	7,793			70,314			—
Total assets	$	992,417		$	1,107,099		$	1,193,582

Capital expenditures:
Infrastructure Solutions	$	12,730		$	16,680		$	19,834
Corrosion Protection	9,754			8,603			14,393
Energy Services	3,053			2,713			2,514
Corporate	4,977			2,834			2,019
Total capital expenditures	$	30,514		$	30,830		$	38,760

Depreciation and amortization:
Infrastructure Solutions	$	16,758		$	18,731		$	17,547
Corrosion Protection	11,874			15,598			18,792
Energy Services	7,111			6,726			7,067
Corporate	2,112			3,364			3,313
Total depreciation and amortization	$	37,855		$	44,419		$	46,719

__________________________

⁽¹⁾

Operating income for 2018 includes: (i) $16.9 million of restructuring charges (see Note 4); and (ii) $0.8 million of cost incurred related to the disposition of Denmark. Operating loss for 2017 includes: (i) $18.1 million of restructuring charges (see Note 4); (ii) $45.4 million of goodwill impairment charges (see Note 2); (iii) $41.0 million of definite-lived intangible asset impairment charges (see Note 2); and (iv) $0.7 million of costs incurred related to the acquisition of Environmental Techniques. Operating income for 2016 includes: (i) $2.9 million of restructuring charges (see Note 4); (ii) $2.7 million of costs incurred related to the acquisitions of Underground Solutions, Fyfe Europe, LMJ and Concrete Solutions; (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 12).

⁽²⁾

Operating income for 2018 includes: (i) $8.3 million of restructuring charges (see Note 4); and (ii) $6.2 million of costs incurred related to the divestiture of Bayou. Operating income for 2017 includes $5.9 million of restructuring charges (see Note 4) and (ii) $2.3 million of costs incurred related to the planned divestiture of Bayou. Operating income for 2016 includes $4.6 million of 2016 Restructuring charges (see Note 4).


⁽³⁾	Operating income for 2018 includes $0.4 million of restructuring charges (see Note 4). Operating loss for 2016 includes $8.2 million of 2016 Restructuring charges.

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



	Years Ended December 31,
	2018			2017			2016
Revenues: ⁽¹⁾
United States	$	966,291		$	1,028,313		$	924,580
Canada	133,612			139,734			129,291
Europe	66,794			71,839			60,238
Other foreign	166,871			119,133			107,811
Total revenues	$	1,333,568		$	1,359,019		$	1,221,920

Gross profit:
United States	$	178,024		$	226,026		$	194,079
Canada	22,823			31,173			28,047
Europe	8,379			11,997			11,605
Other foreign	57,700			15,616			20,196
Total gross profit	$	266,926		$	284,812		$	253,927

Operating income (loss):
United States	$	174		$	(33,583	)	$	28,013
Canada	9,482			12,220			16,156
Europe	(10,599		)	(3,771		)	1,089
Other foreign	30,590			(18,386		)	5,533
Total operating income (loss)	$	29,647		$	(43,520	)	$	50,791

Long-lived assets: ⁽¹⁾⁽²⁾
United States	$	105,978		$	93,472		$	140,099
Canada	7,725			8,816			9,464
Europe	8,295			13,435			7,575
Other foreign	6,662			9,586			8,829
Total long-lived assets	$	128,660		$	125,309		$	165,967

__________________________


⁽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, 2018, 2017 and 2016 do not include intangible assets, goodwill or deferred tax assets.