DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

As part of our acquisition of Furmanite, we acquired a pipeline inspection business from Furmanite that primarily performs process management inspection services to contractors and operators participating primarily in the midstream oil and gas market in the United States. The business generates approximately $60 million in annual revenues. We have concluded that this business is not a strategic fit for Team and therefore we have decided not to retain it and have begun to take steps to locate prospective buyers. We have concluded that this business qualifies as a discontinued operation upon its acquisition under GAAP. Therefore, we have classified the operating results as discontinued operations in our consolidated statement of operations. Discontinued operations does not include any allocation of corporate overhead expense or interest expense.

Income from discontinued operations, net of income tax, from the date of the Furmanite acquisition, consists of the following (in thousands):

	Three Months Ended March 31, 2016
	(unaudited)
Revenues	$	5,768
Operating expenses	5,275
Gross margin	493
Selling, general and administrative expenses	281
Income from discontinued operations, before income tax	212
Less: Provision for income taxes	86
Income from discontinued operations, net of income tax	$	126

As discussed in Note 2, the Furmanite purchase price allocation is based on provisional measurements and is subject to change. Our provisional measurements thus far do not include any separate measurements specific to the assets and liabilities of the discontinued operation. Therefore, we have not separately classified any assets or liabilities of the discontinued operation as held for sale in our consolidated balance sheet at this time.

For the three months ended March 31, 2016, there were no material amounts of depreciation, amortization, capital expenditures or significant operating or investing non-cash items related to discontinued operations.