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 and restructuring charges, if applicable.

During the first quarter of 2019, the Company began reporting Corporate expenses separately rather than allocating those costs to the operating segments. The reported information for the quarter ended March 31, 2018 has been revised to conform to the current period presentation.

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



	Quarters Ended March 31,
	2019			2018
Revenues:
Infrastructure Solutions	$	131,543		$	134,427
Corrosion Protection	64,498			98,105
Energy Services	80,863			92,329
Total revenues	$	276,904		$	324,861

Gross profit:
Infrastructure Solutions	$	26,586		$	26,709
Corrosion Protection	12,873			23,576
Energy Services	8,836			11,219
Total gross profit	$	48,295		$	61,504

Operating income (loss):
Infrastructure Solutions ⁽¹⁾	$	5,715		$	3,237
Corrosion Protection ⁽²⁾	(1,760		)	4,962
Energy Services	1,115			3,127
Corporate ⁽³⁾	(5,844		)	(8,145		)
Total operating income (loss)	(774		)	3,181
Other income (expense):
Interest expense	(3,590		)	(5,443		)
Interest income	285			47
Other ⁽⁴⁾	(674		)	(262		)
Total other expense	(3,979		)	(5,658		)
Loss before tax benefit	$	(4,753	)	$	(2,477	)

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⁽¹⁾

Operating income in the first quarter of 2019 includes $2.1 million of 2017 Restructuring charges (see Note 4) and $0.1 million of costs primarily related to the planned divestitures of Insituform Australia. Operating income in the first quarter of 2018 includes: (i) $3.2 million of 2017 Restructuring charges (see Note 4); and (ii) $0.1 million of costs incurred primarily related to the acquisition of Environmental Techniques.


⁽²⁾	Operating loss in the first quarter of 2019 includes $0.2 million of 2017 Restructuring charges (see Note 4). Operating income in the first quarter of 2018 includes $1.5 million of 2017 Restructuring charges (see Note 4).


⁽³⁾	Operating loss in the first quarter of 2019 includes $0.4 million of 2017 Restructuring charges (see Note 4).


⁽⁴⁾	Other expense in the first quarter of 2019 includes $0.2 million of 2017 Restructuring charges (see Note 4).

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



	Quarters Ended March 31,
	2019		2018
Revenues: ⁽¹⁾
United States	$	208,775	$	236,530
Canada	24,068		28,839
Europe	16,003		16,009
Other foreign	28,058		43,483
Total revenues	$	276,904	$	324,861

Gross profit: ⁽¹⁾
United States	$	31,827	$	40,707
Canada	3,454		4,775
Europe	3,519		1,134
Other foreign	9,495		14,888
Total gross profit	$	48,295	$	61,504

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⁽¹⁾	Revenues and gross profit are attributed to the country of origin.