XML 37 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
Business Segment Information (Tables)
 9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segment Operating Results
The following table presents the Company's operating segment results for the three and nine months ended September 30, 2017 and 2016:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
 
Refined Coal:
 
 
 
 
 
 
 
 
Earnings in equity method investments
 
$
12,120

 
$
10,735

 
$
36,089

 
$
30,066

Royalties
 
2,804

 
2,064

 
6,425

 
3,922

 
 
14,924

 
12,799

 
42,514

 
33,988

Emissions Control:
 
 
 
 
 
 
 
 
Equipment sales
 
1,577


14,869


31,304


44,788

Chemicals
 
717


670


3,844


1,717

Consulting services
 
—


171


—


492

 
 
2,294

 
15,710

 
35,148

 
46,997

Total segment reporting revenues
 
17,218

 
28,509

 
77,662

 
80,985

Adjustments to reconcile to reported revenues:
 
 
 
 
 
 
 
 
Refined Coal:
 
 
 
 
 
 
 
 
Earnings in equity method investments
 
(12,120
)
 
(10,735
)
 
(36,089
)
 
(30,066
)
Royalties
 
(2,804
)
 
(2,064
)
 
(6,425
)
 
(3,922
)
 
 
(14,924
)
 
(12,799
)
 
(42,514
)
 
(33,988
)
Total reported revenues
 
$
2,294

 
$
15,710

 
$
35,148

 
$
46,997

 
 
 
 
 
 
 
 
 
Segment operating income (loss):
 
 
 
 
 
 
 
 
Refined Coal (1)
 
$
13,991

 
$
11,913


$
40,149


$
33,974

Emissions Control
 
(895
)
 
2,956

 
1,265

 
9,656

Total segment operating income
 
$
13,096

 
$
14,869

 
$
41,414

 
$
43,630


(1) Included within the RC segment operating income for the three months ended September 30, 2017 and 2016 is 453A interest expense of $0.6 million and $0.9 million, respectively. Included within the RC segment operating income for the nine months ended September 30, 2017 and 2016 are 453A interest expense of $1.6 million and $2.0 million, respectively, and interest expense related to the RCM6 note payable of zero and $0.3 million, respectively. Additionally, included within the RC segment operating income for the nine months ended September 30, 2016 is a $2.1 million gain on the sale of RCM6.
Reconciliation of Reportable Segment Amounts to Consolidated Balances
A reconciliation of reportable segment operating income to the Company's consolidated net income is as follows: 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
 
2017
 
2016
 
2017
 
2016

 
 
 
 
 
 
 
 
Segment operating income
 
$
13,096

 
$
14,869

 
$
41,414

 
$
43,630

Adjustments to reconcile to net income attributable to ADES
 
 
 
 
 
 
 
 
Corporate payroll and benefits
 
(1,222
)
 
(2,034
)
 
(4,375
)
 
(7,946
)
Corporate rent and occupancy
 
(91
)
 
(306
)
 
(208
)
 
(807
)
Corporate legal and professional fees
 
(964
)
 
(1,606
)
 
(3,091
)
 
(6,515
)
Corporate general and administrative
 
(857
)
 
(818
)
 
(2,513
)
 
(2,965
)
Corporate depreciation and amortization
 
(38
)
 
(93
)
 
(296
)
 
(351
)
Corporate interest (expense) income, net
 
(46
)
 
(78
)
 
(329
)
 
(2,200
)
Other (expense) income, net
 
(500
)
 
261

 
2,900

 
(264
)
Income tax expense
 
(3,586
)
 
(583
)
 
(12,614
)
 
(734
)
Net income
 
$
5,792

 
$
9,612

 
$
20,888

 
$
21,848
Reconciliation of Assets from Segment to Consolidated
Segment assets were as follows as of the dates presented:
 
 
As of
(in thousands)
 
September 30,
2017
 
December 31,
2016
Refined Coal
 
$
6,352

 
$
6,310

Emissions Control
 
3,936

 
24,551

All Other and Corporate
 
78,843

 
76,435

Consolidated
 
$
89,131

 
$
107,296