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Business Segment Information
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by a company's chief operating decision maker ("CODM"), or a decision making group, in deciding how to allocate resources and in assessing financial performance. As of December 31, 2014, the Company's CODM was the Company's CEO and CFO, collectively, the CODM. The Company's operating and reportable segments are organized by products and services provided. Segments have been reorganized from prior periods due to changes within the Company's management structure and the manner in which the Company is operating the business. All prior periods have been conformed to the current year presentation.
The Company has four reportable segments: (1) Refined Coal ("RC"); (2) Emissions Control - Engineering and Technology Services ("EC - ETS"); (3) Emissions Control - Manufacturing ("EC - Manufacturing"); and (4) Research and Development ("R&D").
The business segment measurements provided to and evaluated by the CODM are computed in accordance with the principles listed below:
•
The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies except as described below.
•
Segment revenue includes the Company's equity method earnings and losses from the Company's equity method investments. Segment revenue also includes the Company's royalty earnings from CCS.
•
Segment operating income (loss) includes the Company's equity method earnings and losses from the Company's equity method investments and royalty earnings from CCS. However, segment operating income (loss) excludes Payroll and benefits, Rent and occupancy, Legal and professional fees, and General and administrative ("Corporate general and administrative expenses"), as well as depreciation and amortization expense, unless otherwise specifically attributable to a segment.
•
Segment revenue includes Research and Development reimbursements.
•
Items not included in consolidated operating income are excluded from segment operating income except for 453A interest and RCM6 interest expense, which is directly attributable to the RC segment.
The following table presents the Company's operating segment results for the years ended December 31, 2014, 2013 and 2012 (Restated). All assets are located in the U.S. and all significant customers are either U.S. companies or the U.S. Government.
 
 
Years Ended December 31,
(in thousands)
 
2014
 
2013
 
2012 (Restated)
Revenues:
 
 
 
 
 
 
Refined Coal:
 
 
 
 
 
 
Earnings from equity method investments
 
$
42,712

 
$
15,502

 
$
813

Consulting services
 
665

 
1,330

 
3,255

Royalties, related party
 
6,410

 
2,505

 
1,446

 
 
49,787

 
19,337

 
5,514

Emissions Control - Engineering Technology and Services:
 
 
 
 
 
 
Equipment sales
 
11,327

 
3,499

 
7,496

Consulting services
 
2,576

 
3,304

 
4,111

Chemical and other
 
391

 
749

 
715

 
 
14,294

 
7,552

 
12,322

Emissions Control - Manufacturing:
 
 
 
 
 
 
Equipment sales
 
717

 
2,248

 
88

Consulting services
 
1,247

 
2,156

 
651

 
 
1,964

 
4,404

 
739

 
 
 
 
 
 
 
Research and Development:
 
2,033

 
9,817

 
2,881

 
 
2,033

 
9,817

 
2,881

Total segment reporting revenues
 
68,078

 
41,110

 
21,456

 
 
 
 
 
 
 
Adjustments to reconcile to reported revenues:
 
 
 
 
 
 
Refined Coal:
 
 
 
 
 
 
Earnings from equity method investments
 
(42,712
)
 
(15,502
)
 
(813
)
Royalties, related party
 
(6,410
)
 
(2,505
)
 
(1,446
)
 
 
(49,122
)
 
(18,007
)
 
(2,259
)
 
 
 
 
 
 
 
Research and Development:
 
(2,033
)
 
(9,817
)
 
(2,881
)
Total reported revenues
 
$
16,923

 
$
13,286

 
$
16,316

Segment reporting operating income (loss)
 
 
 
 
 
 
Refined Coal
 
$
42,094

 
$
16,227

 
$
1,759

Emissions Control - Engineering Technology and Services
 
(3,073
)
 
(2,580
)
 
(70
)
Emissions Control - Manufacturing
 
(7,635
)
 
(8,378
)
 
(1,337
)
Research and Development
 
(2,640
)
 
(3,536
)
 
(497
)
Total segment operating income (loss)
 
$
28,746

 
$
1,733

 
$
(145
)

A reconciliation of reportable segment amounts to the Company's consolidated balances is as follows: 
 
 
Years Ended December 31,
(in thousands)
 
2014
 
2013
 
2012 (Restated)
Segment income
 
 
 
 
 
 
Total reported segment operating income (loss)
 
$
28,746

 
$
1,733

 
$
(145
)
Adjustments to reconcile to net loss attributable to Advanced Emissions Solutions, Inc.
 
 
 
 
 
 
Corporate payroll and benefits
 
(12,621
)
 
(10,898
)
 
(7,450
)
Corporate rent and occupancy
 
(694
)
 
(593
)
 
(484
)
Corporate legal and professional fees
 
(9,514
)
 
(2,563
)
 
(2,243
)
Corporate general and administrative
 
(3,980
)
 
(2,961
)
 
(2,803
)
Corporate depreciation and amortization
 
(354
)
 
(307
)
 
(263
)
Interest income
 
74

 
109

 
308

Other income (expense)
 
26

 
(44
)
 
(35
)
Income tax (expense) benefit
 
(296
)
 
(463
)
 
(14
)
Net income (loss)
 
$
1,387

 
$
(15,987
)
 
$
(13,129
)

Corporate general and administrative expenses include certain costs that benefit the business as a whole but are not directly related to one of our segments. Such costs include but are not limited to accounting and human resources staff, information systems costs, legal fees, facility costs, audit fees and corporate governance expenses. 
Segment assets were as follows as of the dates presented:
 
 
As of December 31,
(in thousands)
 
2014
 
2013
Assets:
 
 
 
 
Refined Coal
 
$
21,322

 
$
3,887

Emissions Control - Engineering Technology and Services
 
34,175

 
38,480

Emissions Control - Manufacturing
 
11,285

 
10,603

Research and Development
 
6,431

 
1,135

All Other and Corporate
 
20,486

 
19,419

Consolidated
 
$
93,699

 
$
73,524


During the fourth quarter of 2015 the Company realigned its operating segments into two reportable segments: (1) Refined Coal ("RC"); (2) Emissions Control - Engineering and Technology Services ("EC - ETS"). Beginning with the Company's 2015 Annual Report on Form 10-K, the Company will retroactively adjust all segment related disclosures.