SEGMENT REPORTING

6 Months Ended

Jun. 30, 2011

SEGMENT REPORTING

SEGMENT REPORTING

(14) SEGMENT REPORTING

During the quarter ended March 31, 2011, the Company re-aligned its management reporting structure. Under the new structure, the Company’s operations are managed in four reportable segments: Technical Services, Field Services, Industrial Services and Oil and Gas Field Services. The new segment, Oil and Gas Field Services, consists of the previous Exploration Services segment, as well as certain oil and gas related field services departments that were re-assigned from the Industrial Services segment. In addition, certain departments from the Field Services segment were re-assigned to the Industrial Services segment.  Accordingly, the Company re-aligned and re-allocated departmental costs being allocated among the segments to support these management reporting changes.  The Company has recast the segment information to conform to the current year presentation.

Performance of the segments is evaluated on several factors, of which the primary financial measure is “Adjusted EBITDA,” which consists of net income plus accretion of environmental liabilities, depreciation and amortization, net interest expense, and provision for income taxes. Also excluded are other income and income from discontinued operations, net of tax as these amounts are not considered part of usual business operations. Transactions between the segments are accounted for at the Company’s estimate of fair value based on similar transactions with outside customers.

The operations not managed through the Company’s four operating segments are recorded as “Corporate Items.” Corporate Items revenues consist of two different operations for which the revenues are insignificant. Corporate Items cost of revenues represents certain central services that are not allocated to the four operating segments for internal reporting purposes. Corporate Items selling, general and administrative expenses include typical corporate items such as legal, accounting and other items of a general corporate nature that are not allocated to the Company’s four operating segments.

The following table reconciles third party revenues to direct revenues for the three- and six-month periods ended June 30, 2011 and 2010 (in thousands). Third party revenue is revenue billed to outside customers by a particular segment. Direct revenue is the revenue allocated to the segment performing the provided service. The Company analyzes results of operations based on direct revenues because the Company believes that these revenues and related expenses best reflect the manner in which operations are managed.

	For the Three Months Ended June 30, 2011
	TechnicalServices		FieldServices			Industrial Services			Oil and Gas Field Services		CorporateItems			Totals
Third party revenues	$	202,330	$	72,615		$	111,376		$	60,617	$	297		$	447,235
Intersegment revenues, net	4,210		(5,623		)	(1,087		)	2,964		(464		)	—
Direct revenues	$	206,540	$	66,992		$	110,289		$	63,581	$	(167	)	$	447,235

	For the Three Months Ended June 30, 2010
	Technical Services		Field Services (1)			Industrial Services			Oil and Gas Field Services		Corporate Items			Totals
Third party revenues	$	167,409	$	162,723		$	98,804		$	42,663	$	40		$	471,639
Intersegment revenues, net	7,137		(9,086		)	(405		)	2,715		(361		)	—
Direct revenues	$	174,546	$	153,637		$	98,399		$	45,378	$	(321)		$	471,639

	For the Six Months Ended June 30, 2011
	TechnicalServices		FieldServices			Industrial Services			Oil and Gas Field Services		CorporateItems			Totals
Third party revenues	$	387,777	$	134,874		$	219,959		$	139,251	$	336		$	882,197
Intersegment revenues, net	9,351		(9,574		)	(3,960		)	5,157		(974		)	—
Direct revenues	$	397,128	$	125,300		$	215,999		$	144,408	$	(638	)	$	882,197

	For the Six Months Ended June 30, 2010
	Technical Services		Field Services (1)			Industrial Services			Oil and Gas Field Services		Corporate Items			Totals
Third party revenues	$	320,936	$	213,376		$	191,124		$	101,163	$	(64	)	$	826,535
Intersegment revenues, net	12,076		(13,263		)	(1,631		)	3,622		(804		)	—
Direct revenues	$	333,012	$	200,113		$	189,493		$	104,785	$	(868	)	$	826,535

(1)During the three and six months ended June 30, 2010, third party revenues for the Field Services segment included revenues associated with the oil spill response efforts in the Gulf of Mexico of $108.6 million.

The following table presents information used by management by reported segment (in thousands). The Company does not allocate interest expense, income taxes, depreciation, amortization, accretion of environmental liabilities, and other income to segments.

	For the Three Months Ended  June 30,						For the Six Months Ended June 30,
	2011			2010			2011			2010
Adjusted EBITDA:
Technical Services	$	59,614		$	44,385		$	104,951		$	77,565
Field Services	12,515			41,603			18,846			46,634
Industrial Services	25,862			24,122			49,205			43,982
Oil and Gas Field Services	8,427			5,966			23,092			17,462
Corporate Items	(25,191		)	(19,446		)	(47,276		)	(40,018		)
Total	$	81,227		$	96,630		$	148,818		$	145,625
Reconciliation to Consolidated Statements of Income:
Accretion of environmental liabilities	$	2,407		$	2,602		$	4,796		$	5,304
Depreciation and amortization	26,936			22,105			52,396			44,779
Income from operations	51,884			71,923			91,626			95,542
Other income	(2,868		)	(2,708		)	(5,767		)	(3,154		)
Interest expense, net of interest income	10,642			7,646			17,120			14,574
Income from continuing operations before provision for income taxes	$	44,110		$	66,985		$	80,273		$	84,122

The following table presents assets by reported segment and in the aggregate (in thousands):

	June  30, 2011		December 31, 2010
Property, plant and equipment, net
Technical Services	$	266,968	$	259,582
Field Services	34,821		32,311
Industrial Services	221,852		180,781
Oil and Gas Field Services	283,384		151,244
Corporate or other assets	41,251		31,476
Total property, plant and equipment, net	$	848,276	$	655,394
Intangible assets:
Technical Services
Goodwill	$	33,654	$	33,448
Permits and other intangibles, net	65,089		66,075
Total Technical Services	98,743		99,523
Field Services
Goodwill	3,088		3,088
Permits and other intangibles, net	3,491		3,651
Total Field Services	6,579		6,739
Industrial Services
Goodwill	28,583		10,934
Permits and other intangibles, net	18,147		17,906
Total Industrial Services	46,730		28,840
Oil and Gas Field Services
Goodwill	23,186		12,782
Permits and other intangibles, net	40,341		26,768
Total Oil and Gas Field Services	63,527		39,550
Total	$	215,579	$	174,652

The following table presents the total assets by reported segment (in thousands):

	June 30, 2011		December 31, 2010
Technical Services	$	529,173	$	525,286
Field Services	44,494		35,253
Industrial Services	279,602		221,472
Oil and Gas Field Services	419,870		272,479
Corporate Items	691,941		547,985
Total	$	1,965,080	$	1,602,475

The following table presents the total assets by geographical area (in thousands):

	June 30, 2011		December 31, 2010
United States	$	1,060,846	$	933,550
Canada	899,986		664,534
Other foreign	4,248		4,391
Total	$	1,965,080	$	1,602,475