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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2018
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING

Our operations are assessed based on three reportable segments which are summarized as follows:

•
Power segment: focused on the supply of and aftermarket services for steam-generating, environmental and auxiliary equipment for power generation and other industrial applications.
•
Renewable segment: focused on the supply of steam-generating systems, environmental and auxiliary equipment and operations and maintenance services for the waste-to-energy and biomass power generation industries.
•
Industrial segment: focused on the supply of custom-engineered cooling systems for steam applications along with related aftermarket services.

The segment information presented in the table below reflects the product line revenues that are reviewed by each segment's manager. These gross product line revenues exclude eliminations of revenues generated from sales to other segments or to other product lines within the segment. The primary component of the Power segment elimination is revenue associated with construction services. An analysis of our operations by segment is as follows:
 
Three months ended September 30,
 
Nine months ended September 30,
(in thousands)
2018
2017
 
2018
2017
Revenues:
 
 
 
 
 
Power segment
 
 
 
 
 
Retrofits
$
52,366

$
78,684

 
$
183,693

$
222,128

New build utility and environmental
38,039

25,764

 
93,080

123,314

Aftermarket parts and field engineering services
67,678

64,456

 
204,050

202,037

Industrial steam generation
41,143

38,624

 
84,513

103,437

Eliminations
(8,176
)
(5,306
)
 
(17,408
)
(38,642
)
 
191,050

202,222

 
547,928

612,274

Renewable segment
 
 
 
 
 
Renewable new build and services
62,834

93,154

 
147,622

214,156

Operations and maintenance services
14,278

15,403

 
44,450

48,011

Eliminations
(628
)
—

 
(628
)
—

 
76,484

108,557

 
191,444

262,167

Industrial segment
 
 
 
 
 
New build cooling systems
26,852

34,354

 
89,596

101,260

Aftermarket cooling system services
7,997

13,100

 
28,012

42,011

 
34,849

47,454

 
117,608

143,271

 
 
 
 
 
 
Eliminations
(7,420
)
(1,363
)
 
(17,504
)
(6,539
)
 
$
294,963

$
356,870

 
$
839,476

$
1,011,173



Beginning in 2018, we changed our primary measure of segment profitability from gross profit to adjusted earnings before interest, tax, depreciation and amortization ("EBITDA"). The presentation of the components of our gross profit and adjusted EBITDA in the tables below are consistent with the way our chief operating decision maker reviews the results of our operations and makes strategic decisions about our business. Items such as gains or losses on asset sales, mark-to-market ("MTM") pension adjustments, restructuring and spin costs, impairments, losses on debt extinguishment, costs related to financial consulting required under our U.S. Revolving Credit Facility and other costs that may not be directly controllable by segment management are not allocated to the segment. Adjusted EBITDA for each segment is presented below with a reconciliation to net income. Adjusted EBITDA is not a recognized term under GAAP and should not be considered in isolation or as an alternative to net earnings (loss), operating profit (loss) or as an alternative to cash flows from operating activities as a measure of our liquidity. Adjusted EBITDA as presented below differs from the calculation used to compute our leverage ratio and interest coverage ratio as defined by our U.S. Revolving Credit Facility. Because all companies do not use identical calculations, the amounts presented for Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
 
Three months ended September 30,
 
Nine months ended September 30,
(in thousands)
2018
2017
 
2018
2017
Gross profit (loss)(1):
 
 
 
 
 
Power segment
$
34,313

$
35,390

 
$
95,189

$
116,952

Renewable segment
(17,120
)
181

 
(136,898
)
(100,119
)
Industrial segment
(5,524
)
(2,556
)
 
(8,196
)
2,330

Intangible amortization expense included in cost of operations
(1,207
)
(2,262
)
 
(4,868
)
(8,389
)

10,462

30,753

 
(54,773
)
10,774

 
 
 
 
 
 
Selling, general and administrative ("SG&A") expenses
(44,887
)
(49,871
)
 
(151,007
)
(163,723
)
Financial advisory services included in SG&A
(7,244
)
(358
)
 
(15,475
)
(358
)
Intangible amortization expense included in SG&A
(135
)
(127
)
 
(530
)
(331
)
Goodwill impairment
—

(86,903
)
 
(37,540
)
(86,903
)
Restructuring activities and spin-off transaction costs
(2,863
)
(3,664
)
 
(13,551
)
(8,648
)
Research and development costs
(452
)
(1,893
)
 
(2,881
)
(6,123
)
Loss on asset disposals, net
(28
)
(59
)
 
(1,412
)
(61
)
Equity in income and impairment of investees
—

1,234

 
(11,757
)
(13,380
)
Operating loss
$
(45,147
)
$
(110,888
)
 
$
(288,926
)
$
(268,753
)

(1) Gross profit of the segments excludes intangible amortization but includes depreciation.


Three months ended September 30,

Nine months ended September 30,
(in thousands)
2018
2017

2018
2017
Adjusted EBITDA









Power segment(1)
$
21,911

$
21,624


$
49,524

$
66,434

Renewable segment
(25,831
)
(10,648
)

(166,188
)
(133,023
)
Industrial segment
(11,212
)
(7,609
)

(24,744
)
(12,994
)
Corporate(2)
(5,793
)
(8,775
)

(23,601
)
(28,168
)
Research and development costs
(452
)
(1,893
)

(2,881
)
(6,123
)
Foreign exchange
(4,939
)
(6,902
)
 
(22,680
)
(4,563
)
Other – net
(45
)
(241
)

221

(163
)

(26,361
)
(14,444
)

(190,349
)
(118,600
)










Gain on sale of business
39,731

—

 
39,731

—

Gain on sale of equity method investment (BWBC)
—

—


6,509

—

Impairment of equity method investment in TBWES
—

—


(18,362
)
(18,193
)
Loss on debt extinguishment
—

—


(49,241
)
—

Loss on asset disposal
—

(61
)

(1,513
)
(61
)
MTM gain (loss) from benefit plans
4,196

—


4,740

(1,062
)
Financial advisory services
(7,244
)
(358
)

(15,475
)
(358
)
Acquisition and integration costs included in SG&A
—

(141
)

—

(1,573
)
Goodwill impairment
—

(86,903
)
 
(37,540
)
(86,903
)
Restructuring activities and spin-off transaction costs
(2,863
)
(3,664
)

(13,551
)
(8,648
)
Depreciation & amortization
(7,103
)
(7,228
)

(21,005
)
(23,387
)
Interest expense, net
(10,247
)
(7,131
)

(35,316
)
(14,880
)
Loss before income tax expense
(9,891
)
(119,930
)

(331,372
)
(273,665
)
Income tax expense (benefit)
94,256

(5,309
)

99,285

(4,963
)
Loss from continuing operations
(104,147
)
(114,621
)

(430,657
)
(268,702
)
Income (loss) from discontinued operations, net of tax
(1,447
)
532


(60,875
)
(3,078
)
Net loss
(105,594
)
(114,089
)

(491,532
)
(271,780
)
Net income attributable to noncontrolling interest
(94
)
(213
)

(357
)
(566
)
Net loss attributable to stockholders
$
(105,688
)
$
(114,302
)

$
(491,889
)
$
(272,346
)


(1) Power segment adjusted EBITDA includes $6.4 million and $5.0 million of net benefit from pension and other postretirement benefit plans excluding MTM adjustments in the three months ended September 30, 2018 and 2017, respectively. Power segment adjusted EBITDA includes $19.5 million and $15.1 million of net benefit from pension and other postretirement benefit plans excluding MTM adjustments in the nine months ended September 30, 2018 and 2017, respectively.
(2) Allocations are excluded from discontinued operations. Accordingly, allocations previously absorbed by the MEGTEC and Universal businesses in the Industrial segment have been included with other unallocated costs in Corporate, and total $2.9 million and $2.2 million in the three months ended September 30, 2018 and 2017, respectively and $8.6 million and $6.6 million in the nine months ended September 30, 2018 and 2017, respectively.