Segment Information

12 Months Ended

Dec. 31, 2016

Segment Information

Segment Information

18. Segment Information

The Company’s management has identified four reportable segments based on the product line and associated services.  Those segments include Activated Carbon and Service, Equipment, Consumer, and Other.  The Company’s chief operating decision maker (CODM), its chief executive officer, receives and reviews financial information in this format.  The Activated Carbon and Service segment manufactures granular activated carbon for use in applications to remove organic compounds from liquids, gases, water, and air.  This segment also consists of services related to activated carbon including reactivation of spent carbon and the leasing, monitoring, and maintenance of carbon fills at customer sites.  The service portion of this segment also includes services related to the Company’s ion exchange technologies for treatment of groundwater and process streams.  The Equipment segment provides solutions to customers’ air and water process problems through the design, fabrication, and operation of systems that utilize the Company’s enabling technologies: ballast water, ultraviolet light, advanced ion exchange separation, and carbon adsorption.  The Consumer segment supplies activated carbon cloth for use in military, industrial, and medical applications. Other is exclusively comprised of the New Business for the two-month period subsequent to the 2016 acquisition.  The New Business manufactures and markets granular and powdered wood-based activated carbon, coal-based activated carbon reactivation, diatomaceous earth and perlite filtration media for use in applications for decolorization, purification, decontamination, and filtration of liquids in various applications including food and beverage, industrial, fine chemicals and pharmaceuticals.  Intersegment net sales are not material.

In conjunction with the acquisition of the New Business, management has been undertaking a planning process which includes reviewing how the Company will compile and report financial information for review by the Company’s CODM beginning January 1, 2017 to assess performance and allocate resources.  Beginning in the first quarter of 2017, the Company is realigning its internal management reporting structure to incorporate the New Business into the existing business, and evaluating the need to reorganize its current reportable segments.  The Company anticipates the realigned internal management reporting structure will result in three new reportable segments for review by the CODM.  In subsequent periods, the Company will report using the new reportable segment structure and restate prior periods to conform with the change in reportable segments.  As this process was not completed as of December 31, 2016, the results of operations of the New Business have been reported as Other.

The following segment information represents the results of operations:

	Year Ended December 31
	2016		2015		2014
Net sales
Activated Carbon and Service	$	454,565	$	486,548	$	498,212
Equipment		38,864		39,293		45,319
Consumer		8,695		9,163		11,572
Other		12,122		—		—
Consolidated net sales	$	514,246	$	535,004	$	555,103
Income (loss) from operations before restructuring
Activated Carbon and Service	$	36,893	$	67,583	$	78,114
Equipment		(4,633)		(4,210)		(5,657)
Consumer		1,051		1,421		1,896
Other		(8,789)		—		—
		24,522		64,794		74,353
Reconciling items:
Restructuring income		—		—		252
Interest income		99		58		77
Interest expense		(2,385)		(773)		(263)
Other expense — net		(2,163)		(693)		(1,911)
Income before income tax provision	$	20,073	$	63,386	$	72,508

	Year Ended December 31
	2016		2015		2014
Depreciation and amortization
Activated Carbon and Service	$	34,445	$	32,443	$	26,820
Equipment		1,631		2,400		3,049
Consumer		559		610		601
Other		1,435		—		—
Depreciation and amortization	$	38,070	$	35,453	$	30,470
Expenditures for long-lived assets
Activated Carbon and Service	$	30,641	$	57,559	$	60,470
Equipment		2,317		4,266		2,947
Consumer		156		403		495
Other		680		—		—
Total expenditures (1)	$	33,794	$	62,228	$	63,912

(1) Includes $4.0 million, $2.1 million and $2.2 million which are included in accounts payable and accrued liabilities at December 31, 2016, 2015 and 2014, respectively.

	December 31
	2016		2015		2014
Total assets
Activated Carbon and Service	$	538,533	$	597,274	$	564,734
Equipment		45,251		52,894		50,610
Consumer		5,144		6,350		6,317
Other		186,290		—		—
Total assets	$	775,218	$	656,518	$	621,661

	Year Ended December 31
	2016		2015		2014
Net sales by product
Carbon products	$	426,305	$	460,251	$	474,222
Capital equipment		34,349		35,114		41,238
Equipment leasing		14,041		15,235		16,598
Carbon cloth products		8,695		9,163		11,564
Spare parts		4,515		4,179		4,081
Other services		14,219		11,062		7,400
Other products (1)		12,122		—		—
Total net sales	$	514,246	$	535,004	$	555,103

(1) Includes wood-based activated carbon, reactivation, and mineral-based filtration media products of the New Business.

Geographic Information

	Year Ended December 31
	2016		2015		2014
Net sales
United States	$	271,076	$	288,645	$	261,849
United Kingdom		36,552		43,217		46,049
Japan		35,243		35,753		45,261
France		23,646		20,875		28,575
Germany		21,416		17,804		20,656
China		18,559		17,943		17,166
Canada		13,858		17,065		21,910
South Korea		10,231		12,218		18,692
Belgium		9,373		10,383		11,166
Netherlands		5,696		5,184		5,466
Italy		5,206		2,432		2,215
Singapore		4,126		9,923		6,418
Spain		3,812		3,302		4,049
Mexico		3,705		2,662		3,751
Denmark		3,588		4,252		3,978
Other		48,159		43,346		57,902
Total net sales (1)	$	514,246	$	535,004	$	555,103

(1) Net sales are attributable to countries based on location of customer.

	December 31
	2016		2015		2014
Property, plant and equipment, net
United States	$	225,105	$	228,057	$	205,429
France		52,650		—		—
Belgium		46,648		47,921		52,943
United Kingdom		12,586		15,849		11,100
China		12,482		13,779		15,583
Italy		11,624		—		—
Japan		5,207		5,255		5,309
Singapore		74		65		86
Denmark		41		53		59
Canada		11		24		49
Brazil		14		14		22
Germany		—		2		6
Total property, plant and equipment, net	$	366,442	$	311,019	$	290,586