DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

As part of our acquisition of Furmanite, we acquired a pipeline inspection business from Furmanite that primarily performed process management inspection services to contractors and operators participating primarily in the midstream oil and gas market in the United States. We previously concluded that this business was not a strategic fit for Team and we completed the sale of the business in December 2016.

We concluded that this business qualified as a discontinued operation upon its acquisition under GAAP. Therefore, we classified the operating results as discontinued operations in our condensed consolidated statements of operations. Discontinued operations does not include any allocation of corporate overhead expense or interest expense. Income from discontinued operations, net of income tax, consists of the following (in thousands):



	Three Months Ended September 30, 2016		Nine Months Ended September 30, 2016
	(unaudited)		(unaudited)
Revenues	$	14,868	$	36,542
Operating expenses	13,777		33,738
Gross margin	1,091		2,804
Selling, general and administrative expenses	554		1,412
Income from discontinued operations, before income tax	537		1,392
Less: Provision for income taxes	221		564
Income from discontinued operations, net of income tax	$	316	$	828

For the three and nine months ended September 30, 2016, there were no material amounts of depreciation, amortization, capital expenditures or significant operating or investing non-cash items related to discontinued operations.