SEGMENT AND GEOGRAPHIC DISCLOSURES

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC DISCLOSURES

SEGMENT AND GEOGRAPHIC DISCLOSURES

On November 1, 2022, we completed the sale of Quest Integrity business. The criteria for reporting Quest Integrity as a discontinued operation were met as of the sale and, as such, all periods presented in this Form 10-K have been recast to present Quest Integrity as a discontinued operation. Unless otherwise specified, the financial information and discussion in this Form 10-K are based on our continuing operations (IHT and MS segments) and exclude any results of our discontinued operations (Quest Integrity). Refer to Note 2 - Discontinued Operations for additional details.

ASC 280, Segment Reporting, requires us to disclose certain information about our operating segments. Operating segments are defined as “components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.” We conduct operations in two segments: IHT and MS. Historically Quest Integrity was a separate segment, but Quest Integrity is now part of discontinued operations.

Segment data for our two operating segments are as follows (in thousands):

	Twelve Months Ended December 31,
	2022		2021
Revenues:
IHT	$	422,562	$	415,371
MS	417,646		378,826
Total Revenues	$	840,208	$	794,197

	Twelve Months Ended December 31,
	2022		2021
Operating income (loss):
IHT	$	17,093	$	12,997
MS1	20,930		(47,728)
Corporate and shared support services	(77,825)		(92,151)
Total Operating income (loss)	$	(39,802)	$	(126,882)

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1    Includes goodwill impairment loss of $55.8 million for MS for the year ended December 31, 2021.

	Twelve Months Ended December 31,
	2022		2021
Capital expenditures1:
IHT	$	13,939	$	11,742
MS	5,013		3,692
Corporate and shared support services	84		1,464
Total Capital expenditures	$	19,036	$	16,898

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1    Excludes finance leases. Totals may vary from amounts presented in the consolidated statements of cash flows due to the timing of cash payments.

	Twelve Months Ended December 31,
	2022		2021
Depreciation and amortization:
IHT	$	12,391	$	12,959
MS	19,021		20,500
Corporate and shared support services	5,041		5,443
Total Depreciation and amortization	$	36,453	$	38,902

Separate measures of our assets by operating segment are not produced or utilized by management to evaluate segment performance.

A geographic breakdown of our revenues for the years ended December 31, 2022 and 2021 and our total long-lived assets as of December 31, 2022 and 2021 are as follows (in thousands):

	Total Revenues1		Total Long-lived Assets2
Twelve months ended December 31, 2022
United States	$	613,021	$	240,088
Canada	95,790		4,708
Europe	61,713		14,591
Other foreign countries	69,684		2,581
Total	$	840,208	$	261,968
Twelve months ended December 31, 2021
United States	$	561,416	$	261,540
Canada	100,397		7,290
Europe	66,926		19,619
Other foreign countries	65,458		3,845
Total	$	794,197	$	292,294

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1    Revenues attributable to individual countries/geographic areas are based on the country of domicile of the legal entity that performs the work.

2    Excludes goodwill, intangible assets not being amortized that are to be held and used, financial instruments and deferred tax assets.