10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 28, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 001-08604

TEAM, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	74-1765729
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
13131 Dairy Ashford, Suite 600, Sugar Land, Texas	77478
(Address of Principal Executive Offices)	(Zip Code)

(281) 331-6154

(Registrant’s Telephone Number, Including Area Code)

None

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	þ
Non-accelerated filer	¨	Smaller reporting company	¨
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                                                                                                                                                       Yes  ¨     No  þ

The Registrant had 20,788,784 shares of common stock, par value $0.30, outstanding as of March 30, 2015.

INDEX

		Page No.
PART I—FINANCIAL INFORMATION			2
ITEM 1.	Financial Statements		2
	Condensed Consolidated Balance Sheets as of February 28, 2015 (Unaudited) and May 31, 2014		2
	Unaudited Condensed Consolidated Statements of Income for the Three and Nine Months Ended February 28, 2015 and 2014		3
	Unaudited Condensed Consolidated Statements of Comprehensive Income for the Three and  Nine Months Ended February 28, 2015 and 2014		4
	Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended February 28, 2015 and 2014		5
	Notes to Unaudited Condensed Consolidated Financial Statements		6
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		23
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk		27
ITEM 4.	Controls and Procedures		28
PART II—OTHER INFORMATION			29
ITEM 1.	Legal Proceedings		29
ITEM 1A.	Risk Factors		29
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds		29
ITEM 3.	Defaults Upon Senior Securities		30
ITEM 4.	Mine Safety Disclosures		30
ITEM 5.	Other Information		30
ITEM 6.	Exhibits		30
SIGNATURES			31

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PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TEAM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

	February 28, 2015			May 31, 2014
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	35,570		$	34,656
Receivables, net of allowance of $4,190 and $4,784		172,163			175,601
Income tax receivable		4,028			—
Inventory		28,108			25,537
Deferred income taxes		4,786			4,717
Prepaid expenses and other current assets		7,484			8,303
Total current assets		252,139			248,814
Property, plant and equipment, net		93,124			89,961
Assets held for sale		5,207			5,207
Intangible assets, net of accumulated amortization of $15,058 and $12,698		21,163			23,513
Goodwill		108,185			113,763
Other assets, net		548			1,248
Deferred income taxes		3,185			2,435
Total assets	$	483,551		$	484,941
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	21,453		$	21,755
Other accrued liabilities		39,597			48,391
Income taxes payable		—			4,997
Total current liabilities		61,050			75,143
Deferred income taxes		15,646			15,655
Long-term debt		86,445			73,721
Other long-term liabilities		3,063			3,377
Total liabilities		166,204			167,896
Commitments and contingencies
Equity:
Preferred stock, 500,000 shares authorized, none issued		—			—
Common stock, par value $0.30 per share, 60,000,000 shares authorized; 20,788,784 and 20,477,938 shares issued		6,237			6,142
Additional paid-in capital		112,144			105,872
Retained earnings		226,733			202,032
Accumulated other comprehensive loss		(12,488	)		(2,679	)
Treasury stock at cost, 546,977 and 0 shares		(21,138	)		—
Total Team shareholders’ equity		311,488			311,367
Non-controlling interest		5,859			5,678
Total equity		317,347			317,045
Total liabilities and equity	$	483,551		$	484,941

See accompanying notes to unaudited condensed consolidated financial statements.

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TEAM, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

	Three Months Ended February 28,					Nine Months Ended February 28,
	2015		2014			2015		2014
Revenues	$	174,589	$	163,236		$	603,329	$	538,040
Operating expenses		127,877		121,540			421,448		382,532
Gross margin		46,712		41,696			181,881		155,508
Selling, general and administrative expenses		43,786		40,725			138,456		125,482
Earnings from unconsolidated affiliates		—		29			—		822
Gain on revaluation of contingent consideration		—		—			—		2,138
Operating income		2,926		1,000			43,425		32,986
Interest expense, net		560		660			1,786		2,079
Loss on investment in Venezuela		1,177		—			1,177		—
Foreign currency loss		673		1,868			1,489		2,398
Earnings (loss) before income taxes		516		(1,528	)		38,973		28,509
Less: Provision for income taxes		187		(557	)		14,031		10,406
Net income (loss)		329		(971	)		24,942		18,103
Less: Income attributable to non-controlling interest		25		39			241		178
Net income (loss) available to Team shareholders	$	304	$	(1,010	)	$	24,701	$	17,925
Net income (loss) per share: Basic	$	0.01	$	(0.05	)	$	1.20	$	0.88
Net income (loss) per share: Diluted	$	0.01	$	(0.05	)	$	1.13	$	0.84

See accompanying notes to unaudited condensed consolidated financial statements.

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TEAM, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Three Months Ended February 28,						Nine Months Ended February 28,
	2015			2014			2015			2014
Net income (loss)	$	329		$	(971	)	$	24,942		$	18,103
Foreign currency translation adjustment		(7,852	)		(2,715	)		(14,791	)		(2,925	)
Foreign currency hedge		1,527			(94	)		2,966			(856	)
Tax benefit attributable to other comprehensive income		1,179			1,111			1,956			1,944
Total comprehensive income (loss)		(4,817	)		(2,669	)		15,073			16,266
Less: Total comprehensive income attributable to non-controlling interest		2			42			181			173
Total comprehensive income (loss) available to Team shareholders	$	(4,819	)	$	(2,711	)	$	14,892		$	16,093

See accompanying notes to unaudited condensed consolidated financial statements.

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TEAM, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Nine Months Ended February 28,
	2015			2014
Cash flows from operating activities:
Net income	$	24,942		$	18,103
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on investment in Venezuela		1,177			—
Earnings from unconsolidated affiliates		—			(822	)
Depreciation and amortization		16,852			15,976
Amortization of deferred loan costs		167			167
Foreign currency loss		1,489			2,398
Deferred income taxes		1,059			192
Gain on contingent consideration revaluation		—			(2,138	)
Write-down of fixed assets		383			—
Loss (gain) on asset sales		103			(77	)
Non-cash compensation cost		3,691			3,205
(Increase) decrease:
Receivables		(833	)		13,431
Inventory		(3,040	)		75
Prepaid expenses and other current assets		953			1,577
Increase (decrease):
Accounts payable		(878	)		(1,598	)
Other accrued liabilities		(5,966	)		(9,505	)
Income taxes		(8,887	)		(469	)
Net cash provided by operating activities		31,212			40,515
Cash flows from investing activities:
Capital expenditures		(18,712	)		(23,758	)
Business acquisitions, net of cash acquired		(2,949	)		(10,175	)
Proceeds from sale of assets		35			204
Change related to Venezuelan operations		(620	)		—
Distributions from joint venture		—			174
Decrease in other assets, net		269			3
Net cash used in investing activities		(21,977	)		(33,552	)
Cash flows from financing activities:
Net borrowings under revolving credit agreement		15,690			9,800
Deferred consideration payments		(1,000	)		(1,000	)
Contingent consideration payments		(1,000	)		—
Corporate tax effect from share-based payment arrangements		2,088			1,092
Issuance of common stock from share-based payment arrangements		2,331			4,765
Payments related to withholding tax for share-based payment arrangements		(1,743	)		(1,692	)
Payments related to purchase of treasury stock		(21,138	)		(13,334	)
Net cash used in financing activities		(4,772	)		(369	)
Effect of exchange rate changes on cash		(3,549	)		(1,294	)
Net increase in cash and cash equivalents		914			5,300
Cash and cash equivalents at beginning of period		34,656			34,201
Cash and cash equivalents at end of period	$	35,570		$	39,501

See accompanying notes to unaudited condensed consolidated financial statements.

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TEAM, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

Introduction. Unless otherwise indicated, the terms “Team, Inc.,” “Team,” “the Company,” “we,” “our” and “us” are used in this report to refer to Team, Inc., to one or more of our consolidated subsidiaries or to all of them taken as a whole. We are incorporated in the State of Delaware and our company website can be found at www.teamindustrialservices.com. Our stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “TISI” and our fiscal year ends on May 31 of each calendar year.

We are a leading provider of specialty industrial services, including inspection and assessment, required in maintaining high temperature and high pressure piping systems and vessels that are utilized extensively in the refining, petrochemical, power, pipeline and other heavy industries. We conduct operations in three segments: Inspection and Heat Treating Services Group (“IHT”), Mechanical Services Group (“MS”) and Quest Integrity Group (“Quest Integrity”). While our services are aligned in three business groups, we believe our services broadly fall into three different classifications that have unique customer demand drivers: inspection and assessment services, turnaround services and on-stream services.

Inspection and assessment services are offered in both IHT and Quest Integrity. IHT provides basic and advanced non-destructive testing services for the process, pipeline and power sectors, pipeline integrity management services, as well as associated engineering and assessment services. These services can be offered while facilities are running (on-stream), during facility turnarounds or during new construction or expansion activities. Quest Integrity provides integrity and reliability management solutions for the process, pipeline and power sectors. These solutions encompass two broadly-defined disciplines: (1) highly specialized in-line inspection services for unpiggable process piping and pipelines using proprietary in-line inspection tools and analytical software; and (2) advanced condition assessment services through a multi-disciplined engineering team. We believe there is a general growth in market demand for inspection and assessment services as improved inspection technologies enable better information about asset reliability to be available to facility owners and operators.

Turnaround services are offered in both IHT and MS. These services are project-related and demand is a function of the number and scope of scheduled and unscheduled facility turnarounds as well as new industrial facility construction or expansion. Turnaround services include the field machining, technical bolting, field valve repair, heat exchanger repair, and isolation test plugging services that are part of MS and the field heat treating services that are part of IHT.

On-stream services are offered by MS and represent the services offered while plants are operating and under pressure. These services include leak repair, fugitive emissions control and hot tapping. We believe demand for on-stream services is a function of the population of the existing infrastructure of operating industrial facilities.

We offer these services in over 125 locations throughout the world. Our industrial services are available 24 hours a day, 7 days a week, 365 days a year. We market our services to companies in a diverse array of heavy industries which include the petrochemical, refining, power, pipeline, steel, pulp and paper industries, as well as municipalities, shipbuilding, original equipment manufacturers (“OEMs”), distributors, and some of the world’s largest engineering and construction firms. Our services are also provided across a broad geographic reach.

Basis for presentation. These interim financial statements are unaudited, but in the opinion of our management, reflect all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of results for such periods.

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The condensed consolidated balance sheet at May 31, 2014 is derived from the May 31, 2014 audited consolidated financial statements. The results of operations for any interim period are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto contained in our annual report on Form 10-K for the fiscal year ended May 31, 2014.

The Company has revised its previously reported condensed consolidated statement of cash flows for an immaterial error associated with the classification of deferred consideration payments associated with our acquisition of TCI Services, Inc. in September 2012. The revision resulted in a $1.0 million increase in cash flows from operating activities and a corresponding decrease in cash flows from financing activities and had no impact on the Company’s financial position or net income for the periods impacted.

Consolidation. The consolidated financial statements include the accounts of Team, Inc. and our majority-owned subsidiaries where we have control over operating and financial policies. Investments in affiliates in which we have the ability to exert significant influence over operating and financial policies, but where we do not control the operating and financial policies, are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. Effective February 1, 2015, we began reporting the results of our Venezuela operations using the cost method of accounting (see Note 16).

Use of estimates. Our accounting policies conform to Generally Accepted Accounting Principles in the U.S. (“GAAP”). Our most significant accounting policies are described below. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect our reported financial position and results of operations. We review significant estimates and judgments affecting our consolidated financial statements on a recurring basis and record the effect of any necessary adjustments prior to their publication. Estimates and judgments are based on information available at the time such estimates and judgments are made. Adjustments made with respect to the use of these estimates and judgments often relate to information not previously available. Uncertainties with respect to such estimates and judgments are inherent in the preparation of financial statements. Estimates and judgments are used in, among other things, (1) aspects of revenue recognition, (2) valuation of tangible and intangible assets and subsequent assessments for possible impairment, (3) the fair value of the non-controlling interest in subsidiaries that are not wholly-owned, (4) estimating various factors used to accrue liabilities for workers’ compensation, auto, medical and general liability, (5) establishing an allowance for uncollectible accounts receivable, (6) estimating the useful lives of our assets, (7) assessing future tax exposure and the realization of tax assets and (8) estimating the value associated with contingent consideration payment arrangements.

Fair value of financial instruments. Our financial instruments consist primarily of cash, cash equivalents, accounts receivable, accounts payable and debt obligations. The carrying amount of cash, cash equivalents, trade accounts receivable and trade accounts payable are representative of their respective fair values due to the short-term maturity of these instruments. The fair value of our banking facility is representative of the carrying value based upon the variable terms and management’s opinion that the current rates available to us with the same maturity and security structure are equivalent to that of the banking facility.

Cash and cash equivalents. Cash and cash equivalents consist of all demand deposits and funds invested in highly liquid short-term investments with original maturities of three months or less.

Inventory. Inventory is stated at the lower of cost (first-in, first-out method) or market. Inventory includes material, labor and certain fixed overhead costs.

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Property, plant and equipment. Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Leasehold improvements are amortized over the shorter of their respective useful life or the lease term. Depreciation and amortization of assets are computed by the straight-line method over the following estimated useful lives of the assets:

Classification	Useful Life
Buildings		20-40 years
Leasehold improvements		2-15 years
Machinery and equipment		2-12 years
Furniture and fixtures		2-10 years
ERP system development costs		5-10 years
Computers and computer software		2-5 years
Automobiles		2-5 years

Goodwill, intangible assets and non-controlling interest. Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but are instead tested for impairment at least annually in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other (“ASC 350”). Intangible assets with estimated useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment in accordance with ASC 350. We assess goodwill for impairment at the reporting unit level, which we have determined to be the same as our operating segments. Each reporting unit has goodwill relating to past acquisitions.

On May 31, 2014, we completed our annual goodwill impairment test by performing a qualitative analysis that assessed relevant events and circumstances to evaluate whether it was more likely than not that the fair value of our individual reporting units was less than their respective carrying amount of goodwill. If, after assessing the totality of events and circumstances, an entity determines that it is more likely than not that the fair value of a reporting unit is greater than the carrying amount, then the first and second steps of the goodwill impairment test are not necessary. We evaluated considerations under ASC 350, such as macroeconomic effects on our business, industry and market considerations, cost factors that could have a negative effect on cash flows or earnings, overall financial performance, entity-specific events, events affecting reporting units, and any realization of a sustained decrease in the price of our stock. After consideration of the aforementioned events and circumstances, we concluded that it was more likely than not that the fair value of each reporting unit was greater than its respective carrying amount of goodwill. Accordingly, we did not perform the two-step process described above for our fiscal year 2014 annual test. There have been no events that have required an interim assessment of the carrying value of goodwill during the 2015 fiscal year.

There was $108.2 million and $113.8 million of goodwill at February 28, 2015 and May 31, 2014, respectively. A summary of goodwill is as follows (in thousands):

	Nine Months Ended February 28, 2015
	MS			IHT			Quest Integrity			Total
Balance at May 31, 2014	$	19,685		$	63,249		$	30,829		$	113,763
Acquisitions		—			—			—			—
Foreign currency adjustments		(2,120	)		(2,568	)		(890	)		(5,578	)
Balance at February 28, 2015	$	17,565		$	60,681		$	29,939		$	108,185

In November 2010, we purchased 95% of Quest Integrity Group, LLC, a leading provider of proprietary in-line inspection and advanced engineering and assessment services. We expect to purchase the remaining 5%

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interest (“non-controlling interest”) at a consideration to be determined pursuant to a “Put/Call Agreement” that was executed at the time of the Quest Integrity acquisition. That agreement essentially rewards the 5% stakeholders with 35% of the agreed incremental value of Quest Integrity that is created after the original acquisition. The valuation of Quest Integrity will be made as of the end of fiscal year 2015 and will be determined as a multiple of average EBITDA (earnings before interest, taxes, depreciation and amortization) of Quest Integrity for fiscal years 2014 and 2015, subject to certain adjustments. The incremental purchase price for the non-controlling interests will be based upon the average value of Team’s stock over the ninety trading days prior to May 31, 2015 and recorded as an equity transaction with a corresponding removal of the carrying value of the non-controlling interest. Assuming that Quest Integrity’s actual EBITDA for fiscal year 2014 ($14.4 million) and the first three quarters of fiscal year 2015 plus estimated EBITDA for the fourth quarter of fiscal year 2015, approximates the average of actual EBITDA for fiscal years 2014 and 2015 and that the average closing stock price over the ninety previous trading days ending February 28, 2015 ($39.70) approximates the average closing stock price over the ninety trading days prior to May 31, 2015, we estimate that approximately 826,000 Team shares will be issued to acquire the non-controlling interest. These shares are included as dilutive securities in the earnings per share calculation as set forth herein. This estimate is subject to change based upon actual results for Quest Integrity the remainder of in fiscal year 2015 and the use of Team’s actual average stock price as of the measurement date of May 31, 2015.

Information regarding the change in carrying value of the non-controlling interest is set forth below (in thousands):

Carrying value of non-controlling interest at May 31, 2014	$	5,678
Income attributable to non-controlling interest		241
Other comprehensive loss attributable to non-controlling interest		(60	)
Carrying value of non-controlling interest at February 28, 2015	$	5,859

Income taxes. We follow the guidance of ASC 740, Income Taxes (“ASC 740”) which requires that we use the asset and liability method of accounting for deferred income taxes and provide deferred income taxes for all significant temporary differences. As part of the process of preparing our consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves estimating our actual current tax payable and related tax expense together with assessing temporary differences resulting from differing treatment of certain items, such as depreciation, for tax and accounting purposes. These differences can result in deferred tax assets and liabilities, which are included within our consolidated balance sheet.

In accordance with ASC 740, we are required to assess the likelihood that our deferred tax assets will be realized and, to the extent we believe that it is more likely than not (a likelihood of more than 50%) that some portion or all of the deferred tax assets will not be realized, we must establish a valuation allowance. We consider all available evidence to determine whether, based on the weight of the evidence, a valuation allowance is needed. Evidence used includes information about our current financial position and our results of operations for the current and preceding years, as well as all currently available information about future years, including our anticipated future performance, the reversal of existing taxable temporary differences and tax planning strategies.

Workers’ compensation, auto, medical and general liability accruals. In accordance with ASC 450, Contingencies, we record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We review our loss contingencies on an ongoing basis to ensure that we have appropriate reserves recorded on our consolidated balance sheet. These reserves are based on historical experience with claims incurred but not received, estimates and judgments made by management, applicable insurance coverage for litigation matters, and are adjusted as circumstances warrant. For workers’ compensation, our self-insured retention is $1.0 million and our automobile liability self-insured retention is currently $500,000 per occurrence. For general liability claims, we have an effective self-insured retention of $3.0 million per occurrence. For medical claims, our self-insured retention is $175,000 per individual claimant determined on an

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annual basis. For environmental liability claims, our self-insured retention is $500,000 per occurrence. We maintain insurance for claims that exceed such self-retention limits. The insurance is subject to terms, conditions, limitations and exclusions that may not fully compensate us for all losses. Our estimates and judgments could change based on new information, changes in laws or regulations, changes in management’s plans or intentions, or the outcome of legal proceedings, settlements or other factors. If different estimates and judgments were applied with respect to these matters, it is likely that reserves would be recorded for different amounts.

Revenue recognition. We determine our revenue recognition guidelines for our operations based on guidance provided in applicable accounting standards and positions adopted by the FASB and the Securities and Exchange Commission (“SEC”). Most of our projects are short-term in nature and we predominantly derive revenues by providing a variety of industrial services on a time and material basis. For all of these services our revenues are recognized when services are rendered or when product is shipped to the job site and risk of ownership passes to the customer. However, due to various contractual terms with our customers, at the end of any reporting period, there may be services that have been rendered but not billed and an accrual of estimated revenue and unbilled receivables is recorded. At February 28, 2015 and May 31, 2014, the amount of earned but unbilled revenue included in accounts receivable was $15.4 million and $14.9 million, respectively.

Allowance for doubtful accounts. In the ordinary course of business, a portion of our accounts receivable are not collected due to billing disputes, customer bankruptcies, dissatisfaction with the services we performed and other various reasons. We establish an allowance to account for those accounts receivable that will eventually be deemed uncollectible. The allowance for doubtful accounts is based on a combination of our historical experience and management’s review of long outstanding accounts receivable.

Concentration of credit risk. No single customer accounts for more than 10% of consolidated revenues.

Earnings per share. Basic earnings per share is computed by dividing net income available to Team shareholders by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per share is computed by dividing net income available to Team shareholders, less income or loss for the period attributable to the non-controlling interest, by the sum of (1) the weighted-average number of shares of common stock outstanding during the period, (2) the dilutive effect of the assumed exercise of share-based compensation using the treasury stock method and (3) the dilutive effect of the assumed conversion of our non-controlling interest to our common stock.

Amounts used in basic and diluted earnings per share, for the three and nine months ended February 28, 2015 and 2014, are as follows (in thousands):

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Weighted-average number of basic shares outstanding		20,560		20,384		20,569		20,432
Stock options, stock units and performance awards		354		614		449		643
Assumed conversion of non-controlling interest		826		195		826		209
Total shares and dilutive securities		21,740		21,193		21,844		21,284

There were no share-based awards outstanding during the three or nine months ended February 28, 2015 and 2014 excluded from the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of common shares during the periods.

Foreign currency. For subsidiaries whose functional currency is not the U.S. Dollar, assets and liabilities are translated at period ending rates of exchange and revenues and expenses are translated at period average exchange rates. Translation adjustments for the asset and liability accounts are included as a separate component of

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accumulated other comprehensive loss in shareholders’ equity. Foreign currency transaction gains and losses are included in our condensed consolidated statement of income. Effective December 1, 2009, we began to account for Venezuela as a highly-inflationary economy and the effect of all subsequent currency fluctuations between the Bolivar and the U.S. Dollar are recorded in our condensed consolidated statement of income. Subsequently, effective February 1, 2015, we began reporting the results of our Venezuela operations using the cost method of accounting (see Note 16).

Accounting Principles Not Yet Adopted

ASU No. 2014-09. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for us on June 1, 2017. Early application is not permitted. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method or determined the effect ASU 2014-09 will have on our ongoing financial reporting.

2. ACQUISITIONS

In August 2014, we purchased a valve repair company in the U.K. for total consideration of $2.9 million, net of cash acquired of $0.2 million, including estimated contingent consideration of $0.1 million. We are in the process of determining the valuations associated with the tangible and intangible assets. Our preliminary purchase price allocation resulted in $2.4 million being allocated to fixed assets and net working capital and $0.8 million being applied to intangible assets.

In July 2013, we purchased a leading provider of industrial rope access services, for total consideration of approximately $12.9 million including net working capital of $1.3 million and $11.6 million allocated to goodwill and intangible assets. We estimate $9.2 million of the goodwill recognized to be deductible for tax purposes. The purchase price included $1.9 million of contingent consideration. The contingent consideration is based upon the achievement of operating earnings thresholds over a six year period for an amount of up to $4.0 million.

3. RECEIVABLES

A summary of accounts receivable as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015			May 31, 2014
	(unaudited)
Trade accounts receivable	$	160,920		$	165,484
Unbilled revenues		15,433			14,901
Allowance for doubtful accounts		(4,190	)		(4,784	)
Total	$	172,163		$	175,601

4. INVENTORY

A summary of inventory as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015		May 31, 2014
	(unaudited)
Raw materials	$	3,117	$	2,924
Work in progress		1,188		894
Finished goods		23,803		21,719
Total	$	28,108	$	25,537

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5. PROPERTY, PLANT AND EQUIPMENT

A summary of property, plant and equipment as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015			May 31, 2014
	(unaudited)
Land	$	3,024		$	3,078
Buildings and leasehold improvements		27,081			26,793
Machinery and equipment		149,901			150,050
Furniture and fixtures		5,558			5,530
Capitalized ERP system development costs		11,772			4,655
Computers and computer software		6,895			6,842
Automobiles		3,361			3,550
Construction in progress		2,896			3,123
Total		210,488			203,621
Accumulated depreciation and amortization		(117,364	)		(113,660	)
Property, plant and equipment, net	$	93,124		$	89,961

In the second quarter of fiscal year 2014, we initiated the design and implementation of a new enterprise resource planning (“ERP”) system, which we will begin installing during fiscal year 2016. Amortization of the ERP system development costs will be computed by the straight-line method, commencing in the period when substantial testing is completed and the asset is ready for its intended use. Through February 28, 2015, we have capitalized $11.8 million associated with the project.

6. ASSETS HELD FOR SALE

Assets held for sale consists of $5.2 million related to approximately fifty acres of undeveloped land purchased in October 2007 on which we had previously planned to construct future facilities in Pearland, Texas. During the fourth quarter of fiscal year 2012, we decided not to proceed with construction of the future facilities at this location. The property is being actively marketed using the services of a broker.

7. INTANGIBLE ASSETS

A summary of intangible assets as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015							May 31, 2014
	(unaudited)
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	22,669	$	(8,521	)	$	14,148	$	22,424	$	(6,739	)	$	15,685
Non-compete agreements		3,432		(3,335	)		97		3,667		(3,430	)		237
Trade names		4,325		(942	)		3,383		4,325		(717	)		3,608
Technology		5,112		(2,097	)		3,015		5,112		(1,698	)		3,414
Licenses		683		(163	)		520		683		(114	)		569
Total	$	36,221	$	(15,058	)	$	21,163	$	36,211	$	(12,698	)	$	23,513

Amortization expense was $0.9 million for the three months ended February 28, 2015 and 2014. Amortization expense was $2.8 million for the nine months ended February 28, 2015 and 2014.

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8. OTHER ACCRUED LIABILITIES

A summary of other accrued liabilities as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015		May 31, 2014
	(unaudited)
Payroll and other compensation expenses	$	21,539	$	28,737
Insurance accruals		6,180		5,897
Property, sales and other non-income related taxes		1,583		2,381
Lease commitments		1,811		1,881
Deferred revenue		1,299		1,198
Other		7,185		8,297
Total	$	39,597	$	48,391

9. LONG-TERM DEBT, DERIVATIVES AND LETTERS OF CREDIT

Our banking credit facility (“Credit Facility”) with our banking syndicate has borrowing capacity of up to $150 million in multiple currencies, is secured by virtually all of our domestic assets and a majority of the stock of our foreign subsidiaries, and matures in July 2016. In connection with a prior renewal of the Credit Facility, we are amortizing $0.8 million of associated debt issuance costs over the life of the Credit Facility. The Credit Facility bears interest based on a variable Eurodollar rate option (LIBOR plus 1.75% margin at February 28, 2015) and has commitment fees of 0.30% on unused borrowing capacity. At February 28, 2015 we had approximately $50 million of borrowing capacity on our Credit Facility.

In order to secure our casualty insurance programs we are required to post letters of credit generally issued by a bank as collateral. A letter of credit commits the issuer to remit specified amounts to the holder, if the holder demonstrates that we failed to meet our obligations under the letter of credit. If this were to occur, we would be obligated to reimburse the issuer for any payments the issuer was required to remit to the holder of the letter of credit. We were contingently liable for outstanding stand-by letters of credit totaling $13.1 million at February 28, 2015 and $13.6 million at May 31, 2014. Outstanding letters of credit reduce amounts available under our Credit Facility and are considered as having been funded for purposes of calculating our financial covenants under the Credit Facility.

ASC 815, Derivatives and Hedging, established accounting and reporting standards requiring that derivative instruments be recorded at fair value and included in the consolidated balance sheet as assets or liabilities. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation, which is established at the inception date of a derivative. Special accounting for derivatives qualifying as fair value hedges allows derivatives’ gains and losses to offset related results on the hedged item in the consolidated statement of income. For derivative instruments designated as cash flow hedges, changes in fair value, to the extent the hedge is effective, are recognized in other comprehensive income until the hedged item is recognized in earnings. Hedge effectiveness is measured at least quarterly based on the relative cumulative changes in fair value between the derivative contract and the hedged item over time. Credit risks related to derivatives include the possibility that the counter-party will not fulfill the terms of the contract. We considered counter-party credit risk to our derivative contracts when valuing our derivative instruments.

Our borrowing of €12.3 million under the Credit Facility serves as an economic hedge of our net investment in our European operations as fluctuations in the fair value of the borrowing attributable to the U.S. Dollar/Euro spot rate will offset translation gains or losses attributable to our investment in our European operations. At February 28, 2015, the €12.3 million borrowing had a U.S. Dollar value of $13.8 million.

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The amounts recognized in other comprehensive income, and reclassified into income, for the three and nine months ended February 28, 2015 and 2014, are as follows (in thousands):

	Gain (Loss) Recognized in Other Comprehensive Income					Gain (Loss) Reclassified from Other Comprehensive Income  to Earnings				Gain (Loss) Recognized in Other Comprehensive Income					Gain (Loss) Reclassified from Other Comprehensive Income to Earnings
	Three Months Ended February 28,					Three Months Ended February 28,				Nine Months Ended February 28,					Nine Months Ended February 28,
	(unaudited)					(unaudited)				(unaudited)					(unaudited)
	2015		2014			2015		2014		2015		2014			2015		2014
Net investment hedge	$	1,527	$	(94	)	$	—	$	—	$	2,966	$	(856	)	$	—	$	—

The following table presents the fair value totals and balance sheet classification for derivatives designated as hedges under ASC 815 (in thousands):

February 28, 2015

May 31, 2014

(unaudited)

Classification

Balance Sheet Location

Fair Value

Classification

Balance Sheet Location

Fair Value

Net investment hedge

Liability

Long-term debt

$

(4,195

)

Liability

Long-term debt

$

(1,229

)

10. FAIR VALUE MEASUREMENTS

We apply the provisions of ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which among other things, requires enhanced disclosures about assets and liabilities carried at fair value.

As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information available. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The use of unobservable inputs is intended to allow for fair value determinations in situations in which there is little, if any, market activity for the asset or liability at the measurement date. We are able to classify fair value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy such that “Level 1” measurements include unadjusted quoted market prices for identical assets or liabilities in an active market, “Level 2” measurements include quoted market prices for identical assets or liabilities in an active market which have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets, and “Level 3” measurements include those that are unobservable and of a highly subjective measure.

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The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis as of February 28, 2015 and May 31, 2014. As required by ASC 820, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement (in thousands):

	February 28, 2015
	(unaudited)
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Liabilities:
Contingent consideration	$	—	$	—		$	1,261	$	1,261
Net investment hedge	$	—	$	(4,195	)	$	—	$	(4,195	)
	May 31, 2014
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Liabilities:
Contingent consideration	$	—	$	—		$	2,015	$	2,015
Net investment hedge	$	—	$	(1,229	)	$	—	$	(1,229	)

There were no transfers in and out of Level 1, Level 2 or Level 3 during the nine months ended February 28, 2015 and 2014.

The fair value of contingent consideration liabilities classified in the table above were estimated using a discounted cash flow technique with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820. The significant inputs in the Level 3 measurement not supported by market activity include a combination of actual cash flows and probability-weighted assessments of expected future cash flows related to the acquired businesses, appropriately discounted considering the uncertainties associated with the obligation, and as calculated in accordance with the terms of the acquisition agreement.

The following table represents the changes in the fair value of Level 3 contingent consideration (in thousands):

	Nine Months Ended February 28, 2015
	(unaudited)
Balance at May 31, 2014	$	2,015
Accretion of liability		122
Payment		(1,000	)
Acquisitions		124
Balance at February 28, 2015	$	1,261

11. SHARE-BASED COMPENSATION

We have adopted stock incentive plans and other arrangements pursuant to which our Board of Directors (the “Board”) may grant stock options, restricted stock, stock units, stock appreciation rights, common stock or performance awards to officers, directors and key employees. At February 28, 2015, there were approximately 1.0 million stock options, restricted stock units and performance awards outstanding to officers, directors and key

15

employees. The exercise price, terms and other conditions applicable to each form of share-based compensation under our plans are generally determined by the Compensation Committee of our Board at the time of grant and may vary.

Our share-based payments consist primarily of stock options, stock units, common stock and performance awards. The governance of our share-based compensation does not directly limit the number of future awards. However, the total number of shares ultimately issued may not exceed the total number of shares cumulatively authorized, which is 7,120,000 at February 28, 2015. Shares issued in connection with our share-based compensation are issued out of authorized but unissued common stock. Compensation expense related to share-based compensation totaled $3.7 million and $3.2 million for the nine months ended February 28, 2015 and 2014, respectively. At February 28, 2015, $11.8 million of unrecognized compensation expense related to share-based compensation is expected to be recognized over a remaining weighted-average period of 2.8 years. The tax benefit derived when share-based awards result in a tax deduction for the company was $2.1 million and $1.1 million for the nine months ended February 28, 2015 and 2014, respectively.

We determine the fair value of each stock option at the grant date using a Black-Scholes model and recognize the resulting expense of our stock option awards over the period during which an employee is required to provide services in exchange for the awards, usually the vesting period. There was no compensation expense related to stock options for the nine months ended February 28, 2015 and 2014 as all stock option awards were fully vested. Our options typically vest in equal annual installments over a four year service period. Expense related to an option grant is recognized on a straight line basis over the specified vesting period for those options. Stock options generally have a ten year term. Transactions involving our stock options during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015					Nine Months Ended February 28, 2014
	(unaudited)					(unaudited)
	No. of Options			Weighted Average Exercise Price		No. of Options			Weighted Average Exercise Price
	(in thousands)					(in thousands)
Shares under option, beginning of period		816		$	19.61		1,052		$	20.24
Changes during the period:
Granted		—		$	—		—		$	—
Exercised		(206	)	$	11.35		(195	)	$	24.48
Cancelled		—		$	—		—		$	—
Expired		—		$	—		—		$	—
Shares under option, end of period		610		$	22.39		857		$	19.28
Exercisable at end of period		610		$	22.39		857		$	19.28

Options exercisable at February 28, 2015 had a weighted-average remaining contractual life of 2.0 years. For total options outstanding at February 28, 2015, the range of exercise prices and remaining contractual lives are as follows:

Range of Prices	No. of Options		Weighted Average Exercise Price		Weighted Average Remaining Life
	(in thousands)				(in years)
$9.23 to $9.62		17	$	9.23		0.5
$9.63 to $12.82		61	$	11.74		1.1
$12.83 to $16.03		208	$	14.78		1.4
$16.04 to $32.05		324	$	29.92		2.6
		610	$	22.39		2.0

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Performance awards are settled with common stock upon vesting unless it is not legally feasible to issue shares, in which case the value of the award is settled in cash. We determine the fair value of each performance award based on the market price on the date of grant. Performance awards granted to the Chairman of our Board vest over the longer of four years or the achievement of performance goals based upon our future results of operations. Compensation expense related to performance awards totaled $0.4 million for the nine months ended February 28, 2015 and 2014. Transactions involving our performance awards during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015					Nine Months Ended February 28, 2014
	(unaudited)					(unaudited)
	No. of Performance Awards			Weighted Average Fair Value		No. of Performance Awards			Weighted Average Fair Value
	(in thousands)					(in thousands)
Performance awards, beginning of period		50		$	30.63		57		$	25.45
Changes during the period:
Granted		—		$	—		17		$	36.40
Vested and settled		(22	)	$	27.66		(24	)	$	22.65
Cancelled		—		$	—		—		$	—
Performance awards, end of period		28		$	32.86		50		$	30.63

Under a new performance stock unit award program adopted on November 4, 2014, Long-Term Performance Stock Unit (“LTPSU”) awards granted to our Executive Officers are subject to a three year performance period and a concurrent three year service period. Under this program, the Company communicates “target awards” to the Executive Officers at the beginning of a performance period. The performance target is based on results of operations over the three year performance period with possible payouts ranging from 0% to 300% of the “target awards”. LTPSU awards cliff vest with achievement of the performance goals and completion of the three year service period. Settlement occurs with common stock within 20 business days of vesting. We determine the fair value of each LTPSU award based on the market price on the date of grant. Compensation expense is recognized on a straight-line basis over the vesting term of three years based upon the probable performance target that will be met. Compensation expense of $0.1 million related to performance awards was recognized for the nine months ended February 28, 2015. Transactions involving our performance awards during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015				Nine Months Ended February 28, 2014
	(unaudited)				(unaudited)
	No. of Long-Term Performance Stock Units		Weighted Average Fair Value		No. of Long-Term Performance Stock Units		Weighted Average Fair Value
	(in thousands)				(in thousands)
Long-term performance stock units, beginning of period		—	$	—		—	$	—
Changes during the period:
Granted		23	$	42.25		—	$	—
Vested and settled		—	$	—		—	$	—
Cancelled		—	$	—		—	$	—
Long-term performance stock units, end of period		23	$	42.25		—	$	—

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Stock units are settled with common stock upon vesting unless it is not legally feasible to issue shares, in which case the value of the award is settled in cash. We determine the fair value of each stock unit based on the market price on the date of grant. Stock units generally vest in annual installments over four years and the expense associated with the units is recognized over the same vesting period. We also grant common stock to our directors which typically vest immediately. Compensation expense related to stock units and director stock grants totaled $3.2 million for the nine months ended February 28, 2015 and $2.8 million for the nine months ended February 28, 2014. Transactions involving our stock units and director stock grants during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015					Nine Months Ended February 28, 2014
	(unaudited)					(unaudited)
	No. of Stock Units			Weighted Average Fair Value		No. of Stock Units			Weighted Average Fair Value
	(in thousands)					(in thousands)
Stock and stock units, beginning of period		310		$	31.42		329		$	26.07
Changes during the period:
Granted		156		$	39.51		136		$	36.71
Vested and settled		(133	)	$	29.21		(138	)	$	24.34
Cancelled		(7	)	$	32.10		(16	)	$	27.94
Stock and stock units, end of period		326		$	36.15		311		$	31.39

12. OTHER COMPREHENSIVE INCOME

A summary of changes in other comprehensive income (loss) included within shareholders’ equity is as follows (in thousands):

	Nine Months Ended February 28, 2015										Nine Months Ended February 28, 2014
	(unaudited)										(unaudited)
	Foreign Currency Translation Adjustments			Foreign Currency Hedge		Tax Provision		Total			Foreign Currency Translation Adjustments			Foreign Currency Hedge			Tax Provision			Total
Balance, beginning of period	$	(5,145	)	$	1,229	$	1,237	$	(2,679	)	$	(3,532	)	$	2,004		$	(261	)	$	(1,789	)
Other comprehensive income (loss) before tax		(14,791	)		2,966		1,956		(9,869	)		(2,925	)		(856	)		1,944			(1,837	)
Non-controlling interest		60			—		—		60			5			—			—			5
Balance, end of period	$	(19,876	)	$	4,195	$	3,193	$	(12,488	)	$	(6,452	)	$	1,148		$	1,683		$	(3,621	)

The following table represents the related tax effects allocated to each component of other comprehensive income (in thousands):

	Nine Months Ended February 28, 2015									Nine Months Ended February 28, 2014
	(unaudited)									(unaudited)
	Gross Amount			Tax Effect			Net Amount			Gross Amount			Tax Effect		Net Amount
Foreign currency translation adjustments	$	(14,791	)	$	3,108		$	(11,683	)	$	(2,925	)	$	1,617	$	(1,308	)
Foreign currency hedge		2,966			(1,152	)		1,814			(856	)		327		(529	)
Total	$	(11,825	)	$	1,956		$	(9,869	)	$	(3,781	)	$	1,944	$	(1,837	)

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13. COMMITMENTS AND CONTINGENCIES

Con Ed Matter—We have, from time to time, provided temporary leak repair services for the steam operations of Consolidated Edison Company of New York (“Con Ed”) located in New York City. In July 2007, a Con Ed steam main located in midtown Manhattan ruptured causing one death and other injuries and property damage. As of February 28, 2015, ninety-five lawsuits have been filed against Con Ed, the City of New York and Team in the Supreme Courts of New York located in Kings, New York and Bronx County, alleging that our temporary leak repair services may have contributed to the cause of the rupture. The lawsuits seek generally unspecified compensatory damages for personal injury, property damage and business interruption. Additionally, on March 31, 2008, we received a letter from Con Ed alleging that our contract with Con Ed requires us to indemnify and defend Con Ed for additional claims filed against Con Ed as a result of the rupture. Con Ed filed an action to join Team and the City of New York as defendants in all lawsuits filed against Con Ed that did not include Team and the City of New York as direct defendants. We are vigorously defending the lawsuits and Con Ed’s claim for indemnification. We are unable to estimate the amount of liability to us, if any, associated with these lawsuits and the claim for indemnification. We maintain insurance coverage, subject to a deductible limit of $250,000, which we believe should cover these claims. We have not accrued any liability in excess of the deductible limit for the lawsuits. We do not believe the ultimate outcome of these matters will have a material adverse effect on our financial position, results of operations or cash flows.

In December 2014, our subsidiary, Quest Integrity, filed three patent infringement lawsuits against three different defendants. Quest Integrity alleges that the three defendants infringed Quest Integrity’s patent, entitled “2D and 3D Display System and Method for Furnace Tube Inspection”. This Quest Integrity patent provides a system and method for displaying inspection data collected during the inspection of furnace tubes in petroleum and petro-chemical refineries. The subject patent litigation is specific to the visual display of the collected data and does not relate to Quest Integrity’s underlying advanced inspection technology. In these lawsuits Quest Integrity is seeking temporary and permanent injunctive relief, as well as money damages. Defendants have denied they infringe any valid claim of the patent and are contesting the allegations.

We are involved in various other lawsuits and are subject to various claims and proceedings encountered in the normal conduct of business. In our opinion, any uninsured losses that might arise from these lawsuits and proceedings will not have a materially adverse effect on our consolidated financial statements.

14. ENTITY WIDE DISCLOSURES

ASC 280, Segment Reporting, requires we disclose certain information about our operating segments where 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 three segments: IHT, MS and Quest Integrity. All three operating segments operate under a business segment manager who reports directly to Team’s Chief Executive Officer who operates as the chief operating decision maker. Segment data for our three operating segments are as follows (in thousands):

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues:
IHT	$	95,350	$	85,149	$	335,024	$	290,409
MS		64,999		63,440		217,066		200,196
Quest Integrity		14,240		14,647		51,239		47,435
Total	$	174,589	$	163,236	$	603,329	$	538,040

19

	Three Months Ended February 28,						Nine Months Ended February 28,
	2015			2014			2015			2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Operating income:
IHT	$	7,536		$	3,783		$	41,822		$	31,666
MS		3,357			2,939			18,870			17,120
Quest Integrity		100			1,170			7,217			5,986
Corporate and shared support services		(8,067	)		(6,892	)		(24,484	)		(21,786	)
Total	$	2,926		$	1,000		$	43,425		$	32,986

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Capital expenditures:
IHT	$	2,029	$	2,187	$	5,893	$	5,602
MS		797		1,503		2,884		4,694
Quest Integrity		855		582		2,466		3,257
Corporate and shared support services		3,606		5,867		7,469		10,205
Total	$	7,287	$	10,139	$	18,712	$	23,758

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Depreciation and amortization:
IHT	$	2,138	$	1,936	$	6,207	$	5,947
MS		1,850		1,801		5,598		5,391
Quest Integrity		1,429		1,343		4,254		4,033
Corporate and shared support services		271		205		793		605
Total	$	5,688	$	5,285	$	16,852	$	15,976

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

A geographic breakdown of our revenues and total assets are as follows (in thousands):

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues:
United States	$	134,805	$	120,916	$	450,462	$	382,322
Canada		22,454		22,267		94,572		93,621
Europe		9,365		10,448		33,275		31,079
Other foreign countries		7,965		9,605		25,020		31,018
Total	$	174,589	$	163,236	$	603,329	$	538,040

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	February 28, 2015		May 31, 2014
	(unaudited)
Total assets:
United States	$	369,808	$	353,624
Canada		61,068		68,515
Europe		32,127		38,870
Other foreign countries		20,548		23,932
Total	$	483,551	$	484,941

15. UNCONSOLIDATED SUBSIDIARIES

Our earnings from unconsolidated affiliates consisted entirely of our joint venture (50% ownership) to perform non-destructive testing and inspection services in Alaska. At December 31, 2013 the joint venture was dissolved and the net assets were liquidated resulting in no material gain or loss. However, the operations of the joint venture have been continued by our IHT division. Revenues from the joint venture not reflected in our consolidated revenues were zero and $8.5 million for the nine months ended February 28, 2015 and 2014, respectively.

16. VENEZUELAN OPERATIONS

We operate a small service location in Punta Fijo, Venezuela, whose annual revenues have historically been less than one percent of our consolidated revenues for all periods presented. Because of the uncertain political environment in Venezuela, starting in the third quarter of fiscal year 2010, we began to account for Venezuelan operations pursuant to accounting guidance for hyperinflationary economies. Following the designation of the Venezuelan economy as hyperinflationary, we ceased taking the effects of currency fluctuations to accumulated other comprehensive income and began reflecting all effects as a component of other income in our statement of operations.

In the third quarter of fiscal year 2014, we began using an alternative Venezuelan, state-run exchange rate, commonly referred to as SICAD-1, to translate local currency financial statements. As a result of the revaluation, we recognized a $1.9 million foreign currency loss in the third quarter of fiscal year 2014. In March 2014, a market-based, state-run exchange, commonly referred to as SICAD-2, was initiated by the Central Bank of Venezuela. As of the beginning of the fourth quarter of fiscal year 2014, Team began using the nascent market-based, state-run exchange rate, commonly referred to as SICAD-2 (approximately 50 Bolivars to the U.S. Dollar) to translate local currency financial statements, changing from the SICAD-1 rate (which fluctuated between 10 and 11.8 Bolivars per U.S. Dollar). As a result, Team incurred an additional $2.1 million foreign currency loss associated with a further revaluation of our Venezuelan business in the fourth quarter of fiscal year 2014.

Prior to February 1, 2015, we included the results of our Venezuelan operations in our consolidated financial statements using the consolidation method of accounting. Venezuelan exchange control regulations have resulted in an other-than-temporary lack of exchangeability between the Venezuelan Bolivar and U.S. Dollar, and have restricted our Venezuelan operations’ ability to pay dividends and obligations denominated in U.S. Dollars. These exchange regulations, combined with other recent Venezuelan regulations, have constrained equipment availability and are now significantly limiting our Venezuelan operations’ ability to maintain normal operations. As a result of these conditions, and in accordance with ASC 810, Consolidation, we began reporting the results of our Venezuelan operations using the cost method of accounting. The change, which we made effective February 1, 2015, resulted in a third quarter 2015 pre-tax charge of $1.2 million. In future periods, our financial results will not include the operating results of our Venezuelan operations. Instead, we will record cash and recognize income from our Venezuelan operations in our consolidated financial statements to the extent we receive payments for obligations or dividends from them.

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17. REPURCHASE OF COMMON STOCK

On October 1, 2013, our Board approved an initial $25 million stock repurchase plan, superseding and replacing our previous stock repurchase plan. During the second quarter of fiscal year 2014, we repurchased 369,900 shares for a total cost of $13.3 million. These shares, along with 89,569 shares purchased under a previous plan in a prior period at a cost of $1.3 million, were retired and not included in common stock issued and outstanding as of May 31, 2014. The retirement of the shares purchased resulted in a reduction in common stock of $0.1 million, a reduction of $2.2 million to additional paid-in capital, and a $12.3 million reduction in retained earnings.

On June 23, 2014 our Board authorized an increase in the stock repurchase plan limit to $50 million (net of the $13.3 million repurchased in the second quarter of fiscal year 2014). During the third quarter of fiscal year 2015, we repurchased 546,977 shares for a total cost of $21.1 million. At February 28, 2015 $15.5 million remained available to repurchase shares under the stock repurchase plan.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Item 1 of this report, and the consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, including Critical Accounting Policies, included in our Annual Report on Form 10-K for the year ended May 31, 2014.

We based our forward-looking statements on our reasonable beliefs and assumptions, and our current expectations, estimates and projections about ourselves and our industry. We caution that these statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In addition, we based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. We wish to ensure that such statements are accompanied by meaningful cautionary statements, so as to obtain the protections of the safe harbor established in the Private Securities Litigation Reform Act of 1995. New risk factors emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, forward-looking statements cannot be relied upon as a guarantee of future results and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected in the statements, including, but not limited to the statements under “Risk Factors”. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Differences between actual results and any future performance suggested in these forward-looking statements could result from a variety of factors, including those listed beginning on page 8 of our Annual Report on Form 10-K for the year ended May 31, 2014.

General Description of Business

We are a leading provider of specialty industrial services, including inspection and assessment, required in maintaining high temperature and high pressure piping systems and vessels that are utilized extensively in the refining, petrochemical, power, pipeline and other heavy industries. We conduct operations in three segments: IHT, MS and Quest Integrity. While our services are aligned in three business groups and believe our services broadly fall into three different classifications that have unique customer demand drivers: inspection and assessment services, turnaround services and on-stream services.

Inspection and assessment services are offered in both IHT and Quest Integrity. IHT provides basic and advanced non-destructive testing services for the process, pipeline and power sectors, pipeline integrity management services, as well as associated engineering and assessment services. These services can be offered while facilities are running (on-stream) or during facility turnarounds or during new construction or expansion activities. Quest Integrity provides integrity and reliability management solutions for the process, pipeline and power sectors. These solutions encompass two broadly-defined disciplines: (1) highly specialized in-line inspection services for unpiggable process piping and pipelines using proprietary in-line inspection tools and analytical software; and (2) advanced condition assessment services through a multi-disciplined engineering team. We believe there is a general growth in market demand for inspection and assessment services as improved inspection technologies enable better information about asset reliability to be available to facility owners and operators.

Turnaround services are offered in both IHT and MS. These services are project-related and demand is a function of the number and scope of scheduled and unscheduled facility turnarounds as well as new industrial facility construction or expansion. Turnaround services include: field machining, technical bolting, field valve repair, heat exchanger repair and isolation test plugging services that are part of MS and the field heat treating services that are part of IHT.

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On-stream services are offered by MS and represent the services offered while plants are operating and under pressure. These services include leak repair, fugitive emissions control and hot tapping. We believe demand for on-stream services is a function of the population of the existing infrastructure of operating industrial facilities.

We offer these services in over 125 locations throughout the world. Our industrial services are available 24 hours a day, 7 days a week, 365 days a year. We market our services to companies in a diverse array of heavy industries which include the petrochemical, refining, power, pipeline, steel, pulp and paper industries, as well as municipalities, shipbuilding, OEMs, distributors, and some of the world’s largest engineering and construction firms. Our services are also provided across a broad geographic reach.

Three Months Ended February 28, 2015 Compared to Three Months Ended February 28, 2014

The following table sets forth the components of revenue and operating income from our operations for the three months ended February 28, 2015 and 2014 (in thousands):

	Three Months Ended February 28,						Increase (Decrease)
	2015			2014			$			%
Revenues by business segment:
IHT	$	95,350		$	85,149		$	10,201			12.0	%
MS		64,999			63,440			1,559			2.5	%
Quest Integrity		14,240			14,647			(407	)		2.8	%
Total	$	174,589		$	163,236		$	11,353			7.0	%
Operating income:
IHT	$	7,536		$	3,783		$	3,753			99.2	%
MS		3,357			2,939			418			14.2	%
Quest Integrity		100			1,170			(1,070	)		91.5	%
Corporate and shared support services		(8,067	)		(6,892	)		(1,175	)		17.0	%
Total	$	2,926		$	1,000		$	1,926			192.6	%

Revenues. Our revenues for the three months ended February 28, 2015 were $174.6 million compared to $163.2 million for the prior year quarter, an increase of $11.4 million or 7%. IHT revenues were $95.4 million in the quarter, up 12% compared to the prior year quarter. MS revenues of $65.0 million for the quarter were up 3% over the prior year quarter. Quest Integrity revenues were $14.2 million, down 3% over the prior year quarter. While activity levels were higher for our IHT and MS segments, market conditions softened some in the third quarter of fiscal year 2015 due to U.S. refinery strikes and reduced oil commodity pricing. Quest Integrity’s processing business line experienced the most significant impact as several planned projects were deferred. Foreign revenues were also negatively impacted from the significant strengthening of the U.S. Dollar and related impact on nearly all of our foreign operations.

Operating Income. Operating income for the three months ended February 28, 2015 was $2.9 million compared to $1.0 million for the prior year quarter, an increase of $1.9 million or 193%. After removal of $1.1 million in legal fees associated with a legal defense of Quest Integrity intellectual property, and $0.4 million in a fixed asset write-down, operating income would have improved by $3.4 million or 340%. Additionally, operating income as a percentage of revenue would have been 2.5% in the current year quarter compared to 0.6% in the prior year quarter after removal of the two non-routine items mentioned above. While our third quarter is traditionally our most challenging period of our fiscal year, the increased leverage obtained by improved revenues discussed earlier were the biggest contributing factor to the improvement in current year operating margin. Corporate and shared support costs increased $1.2 million due primarily to IT infrastructure improvements, non cash stock compensation related to the issuance of Long-Term Performance Stock Units and other general corporate support costs to support higher activity levels during the quarter.

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Venezuela Impairment Loss. During the three months ended February 28, 2015, management began reporting the results of our Venezuelan operations using the cost method of accounting. This change resulted in a one-time pretax charge of $1.2 million. This decision was made given the other-than-temporary lack of exchangeability in the Venezuelan currency combined with other recent Venezuelan regulations that negatively impacted our ability to control operations and maintain normal service levels.

Foreign Currency Loss. During the three months ended February 28, 2015, losses due to changes in foreign currency rates were $0.7 million as compared to $1.9 million in the prior year quarter. The current year quarter reflects the effects of a strengthening U.S. Dollar relative to the currencies we have exposure to, principally the Canadian Dollar and the Euro. The prior year quarter reflects losses associated with a devaluation in Venezuelan currency.

Nine Months Ended February 28, 2015 Compared to Nine Months Ended February 28, 2014

The following table sets forth the components of revenue and operating income from our operations for the nine months ended February 28, 2015 and 2014 (in thousands):

	Nine Months Ended February 28,						Increase (Decrease)
	2015			2014			$			%
Revenues by business segment:
IHT	$	335,024		$	290,409		$	44,615			15.4	%
MS		217,066			200,196			16,870			8.4	%
Quest Integrity		51,239			47,435			3,804			8.0	%
Total	$	603,329		$	538,040		$	65,289			12.1	%
Operating income:
IHT	$	41,822		$	31,666		$	10,156			32.1	%
MS		18,870			17,120			1,750			10.2	%
Quest Integrity		7,217			5,986			1,231			20.6	%
Corporate and shared support services		(24,484	)		(21,786	)		(2,698	)		12.4	%
Total	$	43,425		$	32,986		$	10,439			31.6	%

Revenues. Our revenues for the nine months ended February 28, 2015 were $603.3 million compared to $538.0 million for the same period in the prior year, an increase of $65.3 million or 12%. IHT revenues were $335.0 million in the nine months ended February 28, 2015, up 15% compared to the prior year period. MS revenues were $217.1 million in the nine months ended February 28, 2015, up 8% over the same period in the prior year. Quest Integrity revenues were $51.2 million, up 8% over the same period in the prior year. Some of the contributing factors to this broad-based growth are pipeline projects, new construction and capital projects, large heat treating projects, as well as turnaround and outage services across all regions.

Operating Income. Operating income for the nine months ended February 28, 2015 was $43.4 million compared to $33.0 million for the same period in the prior year, an increase of $10.4 million or 32%. The current year period includes $0.2 million in acquisition costs, $1.1 million in legal fees associated with a legal defense of Quest Integrity intellectual property and $0.4 million in a non-routine fixed asset write-down. The prior year period includes $2.1 million in contingent consideration revaluation benefit along with $0.7 million in non-routine severance costs. After removal of these non-routine items, operating income would have improved by $13.5 million or 43%. Additionally, operating income as a percentage of revenue would have improved to 7.5% in the current year period compared to 5.9% in the prior year period after removal of these non-routine items. The improvement in operating margin is a function of increased operating leverage of 20% in the current fiscal year coupled with a improvement in gross margin percentage that is in excess of 100 basis points. Corporate and shared support costs increased $2.7 million due primarily to non cash stock compensation related to the issuance

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of Long-Term Performance Stock Units in the prior quarter, IT infrastructure improvements during the quarter and other general corporate support costs to support higher activity levels during the nine months ended February 28, 2015.

Earnings from Unconsolidated Affiliates. The earnings from unconsolidated affiliates in last year’s results represented our interest in a joint venture providing inspection services in Alaska. The joint venture was dissolved in December 2013 and the operations that were formerly conducted in the joint venture are now conducted directly by the IHT business unit.

Venezuelan Impairment Loss. During the nine months ended February 28, 2015, management began reporting the results of our Venezuelan operations using the cost method of accounting. This change resulted in a one-time pretax charge of $1.2 million. This decision was made given the other-than-temporary lack of exchangeability in the Venezuelan currency combined with other recent Venezuelan regulations that negatively impacted our ability to control operations and maintain normal service levels.

Foreign Currency Loss. During the current year period, losses due to changes in foreign currency rates were $1.5 million as compared to $2.4 million in the prior year quarter. The current year period reflects the effects of a strengthening U.S. Dollar relative to the currencies we have exposure to, principally the Canadian Dollar and the Euro. The prior year quarter is mostly composed of losses associated with a devaluation in Venezuelan currency.

Liquidity and Capital Resources

Financing for our operations consists primarily of vendor financing and leasing arrangements, our Credit Facility and cash flows attributable to our operations, which we believe are sufficient to fund our business needs. The Credit Facility has borrowing capacity of up to $150 million in multiple currencies, bears interest based on a variable Eurodollar rate option (LIBOR plus 1.75% margin at February 28, 2015) with the margin based on financial covenants set forth in the Credit Facility. In connection with a prior renewal of the Credit Facility, we are amortizing $0.8 million of associated debt issuance costs over the life of the Credit Facility. At February 28, 2015, we had $35.6 million of cash on hand and approximately $50 million of available borrowing capacity through our Credit Facility. Our Credit Facility matures in July 2016 and there are no mandatory payments before the maturity date. At that time, we expect to be able to renew the facility based upon our long-term relationships with each member bank of our Credit Facility and the relatively low credit leverage defined as our debt to EBITDA ratio.

In the second quarter of fiscal year 2014, we initiated the design and implementation of a new ERP system which we will begin installing during fiscal year 2016. Through the end of our third quarter of fiscal year 2015, we have capitalized $11.8 million associated with the project.

On October 1, 2013, our Board approved an initial $25 million stock repurchase plan, superseding and replacing our previous stock repurchase plan. During the second quarter of fiscal year 2014, we repurchased 369,900 shares for a total cost of $13.3 million. These shares, along with 89,569 shares purchased under a previous plan in a prior period at a cost of $1.3 million, were retired and not included in common stock issued and outstanding as of February 28, 2015. The retirement of the shares purchased resulted in a reduction in common stock of $0.1 million, a reduction of $2.2 million to additional paid-in capital, and a $12.3 million reduction in retained earnings.

On June 23, 2014, our Board authorized an increase in the stock repurchase plan limit to $50 million (net of the $13.3 million repurchased in the second quarter of fiscal year 2014). During the third quarter of fiscal year 2015, we repurchased 546,977 shares for a total cost of $21.1 million. At February 28, 2015 $15.5 million remained available to repurchase shares under the stock repurchase plan.

Restrictions on cash. Included in our cash and cash equivalents at February 28, 2015 is $15.2 million of cash in certain foreign subsidiaries (located in primarily Europe and Canada) where earnings are considered by

26

the Company to be permanently reinvested. In the event that some or all of this cash were to be repatriated, we would be required to accrue and pay additional taxes. While not legally restricted from repatriating this cash, we consider all undistributed earnings of these foreign subsidiaries to be indefinitely reinvested and access to cash to be limited.

At February 1, 2015, our Venezuelan subsidiary had $0.6 million of cash on hand based on the SICAD-2, rate in effect at that date. On February 1, 2015 Team management began reporting the results of our Venezuelan operations using the cost method of accounting due to the other-than-temporary lack of exchangeability in the Venezuelan currency combined with other recent Venezuelan regulations. This resulted in recognition of a pre-tax loss of $1.2 million in our third quarter of fiscal year 2015.

Cash flows attributable to our operating activities. For the nine months ended February 28, 2015, net cash provided by operating activities was $31.2 million. Net income of $24.9 million, depreciation and amortization of $16.9 million, foreign currency loss of $1.5 million and non-cash compensation cost of $3.7 million were offset by an increase in working capital of $18.7 million.

Cash flows attributable to our investing activities. For the nine months ended February 28, 2015, net cash used in investing activities was $22.0 million, consisting primarily of $18.7 million of capital expenditures and $2.9 million for business acquisitions. Capital expenditures can vary depending upon specific customer needs that may arise unexpectedly.

Cash flows attributable to our financing activities. For the nine months ended February 28, 2015, net cash used in financing activities was $4.8 million consisting primarily of $15.7 million of net borrowings related to our Credit Facility offset by $21.1 million in payments related to the purchase of treasury stock.

Effect of exchange rate changes on cash. For the nine months ended February 28, 2015, the effect of exchange rate changes on cash was a negative $3.5 million. We have significant operations in Europe and Canada. The impact of foreign currency exchange rates on cash in the current year is primarily attributable to changes in U.S. Dollar exchange rates with Canada and Europe.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have operations in foreign countries with a functional currency that is not the U.S. Dollar. We are exposed to market risk, primarily related to foreign currency fluctuations related to these operations. Subsidiaries with asset and liability balances denominated in currencies other than their functional currency are remeasured in the preparation of their financial statements using a combination of current and historical exchange rates, with any resulting remeasurement adjustments included in net income for the period. Net foreign currency transaction losses for the three and nine month periods ended February 28, 2015 were $0.7 million and $1.5 million, respectively. The foreign currency transaction losses realized in fiscal year 2015 relate primarily to the strengthening of the U.S. Dollar in relation to the Euro, Canadian Dollar, Australian Dollar and Mexican Peso. Subsequent to the period end February 28, 2015, we initiated a foreign currency hedging program to mitigate the foreign currency risk in countries where we have significant assets and liabilities denominated in currencies other than the functional currency. Translation adjustments for the assets and liability accounts are included as a separate component of accumulated other comprehensive income in shareholders’ equity. Foreign currency translation losses in other comprehensive income were $14.8 million for the nine months ended February 28, 2015.

We carry Euro based debt to serve as an economic hedge of our net investment in our European operations as fluctuations in the fair value of the borrowing attributable to the U.S. Dollar/Euro spot rate will offset translation gains or losses attributable to our investment in our European operations. We are exposed to market risk, primarily related to foreign currency fluctuations related to the unhedged portion of our investment in our European operations.

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Prior to February 1, 2015, we accounted for Venezuelan operations pursuant to accounting guidance for hyperinflationary economies. Following the designation of the Venezuelan economy as hyperinflationary, we ceased recording the effects of currency fluctuations to accumulated other comprehensive income and began reflecting all effects as a component of other income in our statement of operations. At February 1, 2015, our Venezuelan subsidiary had $0.6 million of cash on hand based on the SICAD-2, rate in effect at that date. On February 1, 2015 Team management began reporting the results of our Venezuelan operations using the cost method of accounting due to the other-than-temporary lack of exchangeability in the Venezuelan currency combined with other recent Venezuelan regulations. This resulted in recognition of a pre-tax loss of $1.2 million in our third quarter of fiscal year 2015.

We hold certain floating-rate obligations. We are exposed to market risk primarily related to potential increases in interest rates related to our debt.

ITEM 4. CONTROLS AND PROCEDURES

Limitations on effectiveness of control. Our management, including the principal executive and financial officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well designed or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. The design of our control system reflects the fact that there are resource constraints and the benefits of such controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control failures and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts, by collusion of two or more people, or by management override of the controls. The design of any system of controls is also based in part on certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of management’s assessments of the current effectiveness of our disclosure controls and procedures and its internal control over financial reporting are subject to risks. However, our disclosure controls and procedures are designed to provide reasonable assurance that the objectives of our control system are met.

Evaluation of disclosure controls and procedures. As of the end of the period covered by this report, an evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and our Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(f) under the Securities Exchange Act of 1934, as amended (“Exchange Act”)). This evaluation included consideration of the various processes carried out under the direction of our disclosure committee in an effort to ensure that information required to be disclosed in our SEC reports is recorded, processed, summarized and reported within the time periods specified by the SEC. This evaluation also considered the work completed relating to our compliance with Section 404 of the Sarbanes-Oxley Act of 2002.

Based on this evaluation, our CEO and CFO concluded that, as of February 28, 2015, our disclosure controls and procedures were operating effectively to ensure that the information required to be disclosed in our SEC reports is recorded, processed, summarized and reported within the requisite time periods and that such information is accumulated and communicated to management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Changes in internal control over financial reporting. There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) of the Exchange Act) that have materially affected or are reasonably likely to materially affect our internal control over financial reporting during the third quarter of our fiscal year ending May 31, 2015.

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PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Con Ed Matter—We have, from time to time, provided temporary leak repair services for the steam operations of Consolidated Edison Company of New York (“Con Ed”) located in New York City. In July 2007, a Con Ed steam main located in midtown Manhattan ruptured causing one death and other injuries and property damage. As of February 28, 2015, ninety-five lawsuits have been filed against Con Ed, the City of New York and Team in the Supreme Courts of New York located in Kings, New York and Bronx County, alleging that our temporary leak repair services may have contributed to the cause of the rupture. The lawsuits seek generally unspecified compensatory damages for personal injury, property damage and business interruption. Additionally, on March 31, 2008, we received a letter from Con Ed alleging that our contract with Con Ed requires us to indemnify and defend Con Ed for additional claims filed against Con Ed as a result of the rupture. Con Ed filed an action to join Team and the City of New York as defendants in all lawsuits filed against Con Ed that did not include Team and the City of New York as direct defendants. We are vigorously defending the lawsuits and Con Ed’s claim for indemnification. We are unable to estimate the amount of liability to us, if any, associated with these lawsuits and the claim for indemnification. We maintain insurance coverage, subject to a deductible limit of $250,000, which we believe should cover these claims. We have not accrued any liability in excess of the deductible limit for the lawsuits. We do not believe the ultimate outcome of these matters will have a material adverse effect on our financial position, results of operations or cash flows.

In December 2014, our subsidiary, Quest Integrity, filed three patent infringement lawsuits against three different defendants. Quest Integrity alleges that the three defendants infringed Quest Integrity’s patent, entitled “2D and 3D Display System and Method for Furnace Tube Inspection”. This Quest Integrity patent provides a system and method for displaying inspection data collected during the inspection of furnace tubes in petroleum and petro-chemical refineries. The subject patent litigation is specific to the visual display of the collected data and does not relate to Quest Integrity’s underlying advanced inspection technology. In these lawsuits Quest Integrity is seeking temporary and permanent injunctive relief, as well as money damages. Defendants have denied they infringe any valid claim of the patent and are contesting the allegations.

We are involved in various other lawsuits and are subject to various claims and proceedings encountered in the normal conduct of business. In our opinion, any uninsured losses that might arise from these lawsuits and proceedings will not have a materially adverse effect on our consolidated financial statements.

ITEM 1A.   RISK FACTORS

See page 8 of our Annual Report on Form 10-K for the year ended May 31, 2014 for a detailed discussion of our risk factors.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On October 1, 2013, our Board approved an initial $25 million stock repurchase plan, superseding and replacing our previous stock repurchase plan. Concurrently, our Credit Facility was amended to exclude the first $25 million of stock repurchases from the definition of “fixed charges” for purposes of calculating the fixed charge coverage ratio under the Credit Facility. Through November 30, 2013, we repurchased a total of 369,900 shares under this program for an aggregate cost of $13.3 million, or an average price of $36.05 per share.

On June 23, 2014, our Board authorized an increase in the stock purchase plan limit to $50 million (net of the $13.3 million repurchased in the second quarter of fiscal year 2014). During the third quarter of fiscal year 2015, we repurchased 546,977 shares for a total cost of $21.1 million or an average price of $38.62 per share.

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Repurchases during the third quarter of fiscal year 2015 were as follows:

Period	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Appropriate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs
December 1— December 31, 2014		—	$	—		—	$	36,666,511
January 1— January 31, 2015		276,710	$	38.10		276,710	$	28,939,260
February 1— February 28, 2015		270,267	$	39.12		270,267	$	15,528,399
Total		546,977	$	38.62		546,977

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

NONE

ITEM 4. MINE SAFETY DISCLOSURES

NOT APPLICABLE

ITEM 5. OTHER INFORMATION

NONE

ITEM 6. EXHIBITS

Exhibit Number	Description
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS—	XBRL Instance Document.
101.SCH—	XBRL Taxonomy Schema Document.
101.CAL—	XBRL Calculation Linkbase Document.
101.DEF—	XBRL Definition Linkbase Document.
101.LAB—	XBRL Label Linkbase Document.
101.PRE—	XBRL Presentation Linkbase Document.

30

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.

	TEAM, INC. (Registrant)
Date: April 8, 2015	/S/    TED W. OWEN
	Ted W. Owen President and Chief Executive Officer (Principal Executive Officer)
	/S/    GREG L. BOANE
	Greg L. Boane Senior Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

31

EX-31.1

Exhibit 31.1

I, Ted W. Owen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Team, Inc., (“Team”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. Team’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Team and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Team, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of Team’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in Team’s internal control over financial reporting that occurred during Team’s most recent fiscal quarter (Team’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, Team’s internal control over financial reporting; and

5. Team’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Team’s auditors and audit committee of Team’s board of directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Team’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in Team’s internal control over financial reporting.

Date: April 8, 2015

/S/    TED W. OWEN

Ted W. Owen

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

I, Greg L. Boane, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Team, Inc., (“Team”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. Team’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) 15d-15(f)) for Team and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Team, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of Team’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in Team’s internal control over financial reporting that occurred during Team’s most recent fiscal quarter (Team’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, Team’s internal control over financial reporting; and

5. Team’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Team’s auditors and audit committee of Team’s board of directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Team’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in Team’s internal control over financial reporting.

Date: April 8, 2015

/S/    GREG L. BOANE

Greg L. Boane

Senior Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Team, Inc. (the Company) on Form 10-Q for the period ended February 28, 2015, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Ted W. Owen, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/    TED W. OWEN

Ted W. Owen

President and Chief Executive Officer

April 8, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Team, Inc. (the Company) on Form 10-Q for the period ended February 28, 2015, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Greg L. Boane, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/    GREG L. BOANE

Greg L. Boane

Senior Vice President and Chief Financial Officer

April 8, 2015

XML

Information Regarding Change in Carrying Value of Non-Controlling Interest (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Feb. 28, 2015
Noncontrolling Interest [Line Items]
Carrying value of non-controlling interest at May 31, 2014	$ 5,678
Income attributable to non-controlling interest	241
Other comprehensive loss attributable to non-controlling interest	(60)
Carrying value of non-controlling interest at February 28, 2015	$ 5,859

XML

Fair Value Measurements - Additional Information (Detail) (USD $)	9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Fair Value Assets Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfer in and out of Level 1, Level 2 or Level 3 measurements	$ 0	$ 0
Transfer of Liability from Level 1 to Level 2	0	0
Transfer of Liability from Level 2 to Level 1	$ 0	$ 0

XML

Intangible Assets - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 0.9	$ 0.9	$ 2.8	$ 2.8

XML

Summary of Changes in Fair Value of Level 3 Contingent Consideration (Detail) (Contingent Consideration Liabilities, USD $) In Thousands, unless otherwise specified	9 Months Ended
	Feb. 28, 2015
Contingent Consideration Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of period	$ 2,015
Accretion of liability	122
Payment	(1,000)
Acquisitions	124
Balance at end of period	$ 1,261

XML

Assets Held for Sale - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015 acre	May 31, 2014
Long Lived Assets Held-for-sale [Line Items]
Land held for sale	$ 5,207	$ 5,207
Purchase land planned to construct future facilities in area	50

XML

SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Feb. 28, 2015

Transactions Involving Stock Options

Transactions involving our stock options during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015					Nine Months Ended February 28, 2014
	(unaudited)					(unaudited)
	No. of Options			Weighted Average Exercise Price		No. of Options			Weighted Average Exercise Price
	(in thousands)					(in thousands)
Shares under option, beginning of period		816		$	19.61		1,052		$	20.24
Changes during the period:
Granted		—		$	—		—		$	—
Exercised		(206	)	$	11.35		(195	)	$	24.48
Cancelled		—		$	—		—		$	—
Expired		—		$	—		—		$	—
Shares under option, end of period		610		$	22.39		857		$	19.28
Exercisable at end of period		610		$	22.39		857		$	19.28

Options Outstanding, Range of Exercise Prices and Remaining Contractual Lives

For total options outstanding at February 28, 2015, the range of exercise prices and remaining contractual lives are as follows:

Range of Prices	No. of Options		Weighted Average Exercise Price		Weighted Average Remaining Life
	(in thousands)				(in years)
$9.23 to $9.62		17	$	9.23		0.5
$9.63 to $12.82		61	$	11.74		1.1
$12.83 to $16.03		208	$	14.78		1.4
$16.04 to $32.05		324	$	29.92		2.6
		610	$	22.39		2.0

Transactions Involving Performance Awards

Transactions involving our performance awards during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015					Nine Months Ended February 28, 2014
	(unaudited)					(unaudited)
	No. of Performance Awards			Weighted Average Fair Value		No. of Performance Awards			Weighted Average Fair Value
	(in thousands)					(in thousands)
Performance awards, beginning of period		50		$	30.63		57		$	25.45
Changes during the period:
Granted		—		$	—		17		$	36.40
Vested and settled		(22	)	$	27.66		(24	)	$	22.65
Cancelled		—		$	—		—		$	—
Performance awards, end of period		28		$	32.86		50		$	30.63

Transactions Involving Stock Units and Director Stock Grants

Transactions involving our stock units and director stock grants during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015					Nine Months Ended February 28, 2014
	(unaudited)					(unaudited)
	No. of Stock Units			Weighted Average Fair Value		No. of Stock Units			Weighted Average Fair Value
	(in thousands)					(in thousands)
Stock and stock units, beginning of period		310		$	31.42		329		$	26.07
Changes during the period:
Granted		156		$	39.51		136		$	36.71
Vested and settled		(133	)	$	29.21		(138	)	$	24.34
Cancelled		(7	)	$	32.10		(16	)	$	27.94
Stock and stock units, end of period		326		$	36.15		311		$	31.39

Long Term Performance Stock Unit Awards

Transactions Involving Performance Awards

Transactions involving our performance awards during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015				Nine Months Ended February 28, 2014
	(unaudited)				(unaudited)
	No. of Long-Term Performance Stock Units		Weighted Average Fair Value		No. of Long-Term Performance Stock Units		Weighted Average Fair Value
	(in thousands)				(in thousands)
Long-term performance stock units, beginning of period		—	$	—		—	$	—
Changes during the period:
Granted		23	$	42.25		—	$	—
Vested and settled		—	$	—		—	$	—
Cancelled		—	$	—		—	$	—
Long-term performance stock units, end of period		23	$	42.25		—	$	—

XML

Summary of Transactions Involving Stock Options (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares under option, beginning of period, No. of Options	816	1,052
Granted, No. of Options	0	0
Exercised, No. of Options	(206)	(195)
Cancelled, No. of Options	0	0
Expired, No. of Options	0	0
Shares under option, end of period, No. of Options	610	857
Exercisable at end of period, No. of Options	610	857
Shares under option, beginning of period, Weighted Average Exercise Price	$ 19.61	$ 20.24
Granted, Weighted Average Exercise Price	$ 0	$ 0
Exercised, Weighted Average Exercise Price	$ 11.35	$ 24.48
Cancelled, Weighted Average Exercise Price	$ 0	$ 0
Expired, Weighted Average Exercise Price	$ 0	$ 0
Shares under option, end of period, Weighted Average Exercise Price	$ 22.39	$ 19.28
Exercisable at end of period, Weighted Average Exercise Price	$ 22.39	$ 19.28

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Tables)

9 Months Ended

Feb. 28, 2015

Property, Plant and Equipment

Depreciation and amortization of assets are computed by the straight-line method over the following estimated useful lives of the assets:

Classification	Useful Life
Buildings		20-40 years
Leasehold improvements		2-15 years
Machinery and equipment		2-12 years
Furniture and fixtures		2-10 years
ERP system development costs		5-10 years
Computers and computer software		2-5 years
Automobiles		2-5 years

Summary of Goodwill

A summary of goodwill is as follows (in thousands):

	Nine Months Ended February 28, 2015
	MS			IHT			Quest Integrity			Total
Balance at May 31, 2014	$	19,685		$	63,249		$	30,829		$	113,763
Acquisitions		—			—			—			—
Foreign currency adjustments		(2,120	)		(2,568	)		(890	)		(5,578	)
Balance at February 28, 2015	$	17,565		$	60,681		$	29,939		$	108,185

Change in Carrying Value of Non-Controlling Interest

Information regarding the change in carrying value of the non-controlling interest is set forth below (in thousands):

Carrying value of non-controlling interest at May 31, 2014	$	5,678
Income attributable to non-controlling interest		241
Other comprehensive loss attributable to non-controlling interest		(60	)
Carrying value of non-controlling interest at February 28, 2015	$	5,859

Amounts Used In Basic and Diluted Earnings Per Share

Amounts used in basic and diluted earnings per share, for the three and nine months ended February 28, 2015 and 2014, are as follows (in thousands):

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Weighted-average number of basic shares outstanding		20,560		20,384		20,569		20,432
Stock options, stock units and performance awards		354		614		449		643
Assumed conversion of non-controlling interest		826		195		826		209
Total shares and dilutive securities		21,740		21,193		21,844		21,284

XML

Long-Term Debt, Derivatives and Letters of Credit - Additional Information (Detail) In Millions, unless otherwise specified	9 Months Ended					9 Months Ended
	Feb. 28, 2015 USD ($)	Feb. 28, 2015 Economic Hedge USD ($)	Feb. 28, 2015 Economic Hedge EUR (€)	Feb. 28, 2015 Standby Letters of Credit USD ($)	May 31, 2014 Standby Letters of Credit USD ($)	Feb. 28, 2015 Eurodollar Libor Rate
Line of Credit Facility [Line Items]
Borrowing capacity	$ 150
Basis spread on LIBOR Rate						1.75%
Maturity period	July 2016
Debt issuance costs	0.8
Commitment fees on unused borrowing capacity						0.30%
Borrowing under credit facility	50.0	13.8	12.3
Outstanding letter of credit				$ 13.1	$ 13.6

XML

Summary of Accounts Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	May 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unbilled revenues	$ 15,433	$ 14,901
Allowance for doubtful accounts	(4,190)	(4,784)
Total	172,163	175,601
Trade accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 160,920	$ 165,484

XML

Estimated Useful Lives of Assets (Detail)	9 Months Ended
	Feb. 28, 2015
Buildings | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	20 years
Buildings | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	40 years
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	2 years
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	15 years
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	2 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	12 years
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	2 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	10 years
Capitalized ERP system development costs | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	5 years
Capitalized ERP system development costs | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	10 years
Computers and computer software | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	2 years
Computers and computer software | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	5 years
Automobiles | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	2 years
Automobiles | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	5 years

XML

Fair Value Totals and Balance Sheet Classification for Derivatives Designated as Hedges (Detail) (Long-term Debt, Designated as Hedging Instrument, Net Investment Hedge, USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	May 31, 2014
Long-term Debt | Designated as Hedging Instrument | Net Investment Hedge
Derivatives, Fair Value [Line Items]
Fair value liability	$ (4,195)	$ (1,229)

XML

Unconsolidated Subsidiaries - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	May 31, 2008
Schedule of Equity Method Investments [Line Items]
Percentage of ownership in joint venture			50.00%
Equity method investment unconsolidated subsidiaries sales revenues	$ 0	$ 8.5

XML

Summary of Changes in Other Comprehensive Income (Loss) Included Within Shareholders' Equity (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ (2,679)	$ (1,789)
Other comprehensive income (loss) before tax	(9,869)	(1,837)
Non-controlling interest	60	5
Balance, end of period	(12,488)	(3,621)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(5,145)	(3,532)
Other comprehensive income (loss) before tax	(14,791)	(2,925)
Non-controlling interest	60	5
Balance, end of period	(19,876)	(6,452)
Foreign Currency Hedge
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	1,229	2,004
Other comprehensive income (loss) before tax	2,966	(856)
Balance, end of period	4,195	1,148
Tax Provision
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	1,237	(261)
Other comprehensive income (loss) before tax	1,956	1,944
Balance, end of period	$ 3,193	$ 1,683

XML

Summary of Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	May 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 36,221	$ 36,211
Accumulated Amortization	(15,058)	(12,698)
Net Carrying Amount	21,163	23,513
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	22,669	22,424
Accumulated Amortization	(8,521)	(6,739)
Net Carrying Amount	14,148	15,685
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,432	3,667
Accumulated Amortization	(3,335)	(3,430)
Net Carrying Amount	97	237
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,325	4,325
Accumulated Amortization	(942)	(717)
Net Carrying Amount	3,383	3,608
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,112	5,112
Accumulated Amortization	(2,097)	(1,698)
Net Carrying Amount	3,015	3,414
Licenses
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	683	683
Accumulated Amortization	(163)	(114)
Net Carrying Amount	$ 520	$ 569

XML

RECEIVABLES

9 Months Ended

Feb. 28, 2015

RECEIVABLES

3. RECEIVABLES

A summary of accounts receivable as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015			May 31, 2014
	(unaudited)
Trade accounts receivable	$	160,920		$	165,484
Unbilled revenues		15,433			14,901
Allowance for doubtful accounts		(4,190	)		(4,784	)
Total	$	172,163		$	175,601

XML

Related Tax Effects Allocated to Each Components of Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustments, Gross Amount	$ (7,852)	$ (2,715)	$ (14,791)	$ (2,925)
Foreign currency translation adjustments, Tax Effect			3,108	1,617
Foreign currency translation adjustments, Net Amount			(11,683)	(1,308)
Foreign currency hedge, Gross Amount	1,527	(94)	2,966	(856)
Foreign currency hedge, Tax Effect			(1,152)	327
Foreign currency hedge, Net Amount			1,814	(529)
Other Comprehensive Income (Loss), before Tax, Total			(11,825)	(3,781)
Total other comprehensive income, Tax Effect	1,179	1,111	1,956	1,944
Total other comprehensive income, Net Amount			$ (9,869)	$ (1,837)

XML

Summary of Inventory (Detail) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	May 31, 2014
Inventory [Line Items]
Raw materials	$ 3,117	$ 2,924
Work in progress	1,188	894
Finished goods	23,803	21,719
Inventory, Net	$ 28,108	$ 25,537

XML

INTANGIBLE ASSETS (Tables)

9 Months Ended

Feb. 28, 2015

Summary of Intangible Assets

A summary of intangible assets as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015							May 31, 2014
	(unaudited)
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	22,669	$	(8,521	)	$	14,148	$	22,424	$	(6,739	)	$	15,685
Non-compete agreements		3,432		(3,335	)		97		3,667		(3,430	)		237
Trade names		4,325		(942	)		3,383		4,325		(717	)		3,608
Technology		5,112		(2,097	)		3,015		5,112		(1,698	)		3,414
Licenses		683		(163	)		520		683		(114	)		569
Total	$	36,221	$	(15,058	)	$	21,163	$	36,211	$	(12,698	)	$	23,513

XML

PROPERTY, PLANT AND EQUIPMENT (Tables) (Property, Plant and Equipment)

9 Months Ended

Feb. 28, 2015

Property, Plant and Equipment

Property, Plant and Equipment

A summary of property, plant and equipment as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015			May 31, 2014
	(unaudited)
Land	$	3,024		$	3,078
Buildings and leasehold improvements		27,081			26,793
Machinery and equipment		149,901			150,050
Furniture and fixtures		5,558			5,530
Capitalized ERP system development costs		11,772			4,655
Computers and computer software		6,895			6,842
Automobiles		3,361			3,550
Construction in progress		2,896			3,123
Total		210,488			203,621
Accumulated depreciation and amortization		(117,364	)		(113,660	)
Property, plant and equipment, net	$	93,124		$	89,961

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Share-Based Compensation - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding to officers, directors and key employees	1,000,000
Total number of shares cumulatively authorized to be issued under our stock incentive plans	7,120,000
Share-based compensation	$ 3.7	$ 3.2
Employee service share-based compensation, nonvested awards, compensation not yet recognized, share-based awards other than options	11.8
Remaining weighted-average period	2 years 9 months 18 days
Tax benefit related to share-based compensation	2.1	1.1
Weighted-average remaining contractual life of options exercisable	2 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	0	0
Award vesting period	4 years
Stock option year term	10 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	0.4	0.4
Award vesting period	4 years
Stock and Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	3.2	2.8
Award vesting period	4 years
Long Term Performance Stock Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 0.1
Performance Period	3 years
Service Period	3 years
Settlement period	20 days
Long Term Performance Stock Unit Awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Possible payouts	0.00%
Long Term Performance Stock Unit Awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Possible payouts	300.00%

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Summary of Property, Plant and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	May 31, 2014
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 210,488	$ 203,621
Accumulated depreciation and amortization	(117,364)	(113,660)
Property, plant and equipment, net	93,124	89,961
Land
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,024	3,078
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	27,081	26,793
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	149,901	150,050
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	5,558	5,530
Capitalized ERP system development costs
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	11,772	4,655
Computers and computer software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	6,895	6,842
Automobiles
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,361	3,550
Construction in progress
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 2,896	$ 3,123

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OTHER ACCRUED LIABILITIES (Tables)

9 Months Ended

Feb. 28, 2015

Summary of Other Accrued Liabilities

A summary of other accrued liabilities as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015		May 31, 2014
	(unaudited)
Payroll and other compensation expenses	$	21,539	$	28,737
Insurance accruals		6,180		5,897
Property, sales and other non-income related taxes		1,583		2,381
Lease commitments		1,811		1,881
Deferred revenue		1,299		1,198
Other		7,185		8,297
Total	$	39,597	$	48,391

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LONG-TERM DEBT, DERIVATIVES AND LETTERS OF CREDIT (Tables)

9 Months Ended

Feb. 28, 2015

Amounts Recognized In Other Comprehensive Income, and Reclassified Into Income

The amounts recognized in other comprehensive income, and reclassified into income, for the three and nine months ended February 28, 2015 and 2014, are as follows (in thousands):

	Gain (Loss) Recognized in Other Comprehensive Income					Gain (Loss) Reclassified from Other Comprehensive Income  to Earnings				Gain (Loss) Recognized in Other Comprehensive Income					Gain (Loss) Reclassified from Other Comprehensive Income to Earnings
	Three Months Ended February 28,					Three Months Ended February 28,				Nine Months Ended February 28,					Nine Months Ended February 28,
	(unaudited)					(unaudited)				(unaudited)					(unaudited)
	2015		2014			2015		2014		2015		2014			2015		2014
Net investment hedge	$	1,527	$	(94	)	$	—	$	—	$	2,966	$	(856	)	$	—	$	—

Fair Value Totals and Balance Sheet Classification for Derivatives Designated As Hedges

The following table presents the fair value totals and balance sheet classification for derivatives designated as hedges under ASC 815 (in thousands):

February 28, 2015

May 31, 2014

(unaudited)

Classification

Balance Sheet Location

Fair Value

Classification

Balance Sheet Location

Fair Value

Net investment hedge

Liability

Long-term debt

$

(4,195

)

Liability

Long-term debt

$

(1,229

)

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ACQUISITIONS

9 Months Ended

Feb. 28, 2015

ACQUISITIONS

2. ACQUISITIONS

In August 2014, we purchased a valve repair company in the U.K. for total consideration of $2.9 million, net of cash acquired of $0.2 million, including estimated contingent consideration of $0.1 million. We are in the process of determining the valuations associated with the tangible and intangible assets. Our preliminary purchase price allocation resulted in $2.4 million being allocated to fixed assets and net working capital and $0.8 million being applied to intangible assets.

In July 2013, we purchased a leading provider of industrial rope access services, for total consideration of approximately $12.9 million including net working capital of $1.3 million and $11.6 million allocated to goodwill and intangible assets. We estimate $9.2 million of the goodwill recognized to be deductible for tax purposes. The purchase price included $1.9 million of contingent consideration. The contingent consideration is based upon the achievement of operating earnings thresholds over a six year period for an amount of up to $4.0 million.

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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Feb. 28, 2015

Fair Value of Assets and Liabilities Measured on Recurring Basis

The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis as of February 28, 2015 and May 31, 2014. As required by ASC 820, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement (in thousands):

	February 28, 2015
	(unaudited)
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Liabilities:
Contingent consideration	$	—	$	—		$	1,261	$	1,261
Net investment hedge	$	—	$	(4,195	)	$	—	$	(4,195	)
	May 31, 2014
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Liabilities:
Contingent consideration	$	—	$	—		$	2,015	$	2,015
Net investment hedge	$	—	$	(1,229	)	$	—	$	(1,229	)

Summary of Changes in Fair Value of Level 3 Contingent Consideration

The following table represents the changes in the fair value of Level 3 contingent consideration (in thousands):

	Nine Months Ended February 28, 2015
	(unaudited)
Balance at May 31, 2014	$	2,015
Accretion of liability		122
Payment		(1,000	)
Acquisitions		124
Balance at February 28, 2015	$	1,261

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Amounts Used In Basic and Diluted Earnings Per Share (Detail) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Weighted-average number of basic shares outstanding	20,560	20,384	20,569	20,432
Stock options, stock units and performance awards	354	614	449	643
Assumed conversion of non-controlling interest	826	195	826	209
Total shares and dilutive securities	21,740	21,193	21,844	21,284

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Financial Assets and Liabilities that are Accounted For at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	May 31, 2014
Contingent Consideration Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net liabilities	$ 1,261	$ 2,015
Net Investment Hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net liabilities	4,195	1,229
Significant Other Observable Inputs (Level 2) | Net Investment Hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net liabilities	4,195	1,229
Significant Unobservable Inputs (Level 3) | Contingent Consideration Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net liabilities	$ 1,261	$ 2,015

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	May 31, 2014
Current assets:
Cash and cash equivalents	$ 35,570	$ 34,656
Receivables, net of allowance of $4,190 and $4,784	172,163	175,601
Income tax receivable	4,028
Inventory	28,108	25,537
Deferred income taxes	4,786	4,717
Prepaid expenses and other current assets	7,484	8,303
Total current assets	252,139	248,814
Property, plant and equipment, net	93,124	89,961
Assets held for sale	5,207	5,207
Intangible assets, net of accumulated amortization of $15,058 and $12,698	21,163	23,513
Goodwill	108,185	113,763
Other assets, net	548	1,248
Deferred income taxes	3,185	2,435
Total assets	483,551	484,941
Current liabilities:
Accounts payable	21,453	21,755
Other accrued liabilities	39,597	48,391
Income taxes payable		4,997
Total current liabilities	61,050	75,143
Deferred income taxes	15,646	15,655
Long-term debt	86,445	73,721
Other long-term liabilities	3,063	3,377
Total liabilities	166,204	167,896
Commitments and contingencies
Equity:
Preferred stock, 500,000 shares authorized, none issued
Common stock, par value $0.30 per share, 60,000,000 shares authorized; 20,788,784 and 20,477,938 shares issued	6,237	6,142
Additional paid-in capital	112,144	105,872
Retained earnings	226,733	202,032
Accumulated other comprehensive loss	(12,488)	(2,679)
Treasury stock at cost, 546,977 and 0 shares	(21,138)
Total Team shareholders' equity	311,488	311,367
Non-controlling interest	5,859	5,678
Total equity	317,347	317,045
Total liabilities and equity	$ 483,551	$ 484,941

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Property, Plant and Equipment - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	May 31, 2014
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 210,488	$ 203,621
Capitalized ERP system development costs
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 11,772	$ 4,655

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Cash flows from operating activities:
Net income	$ 24,942	$ 18,103
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on investment in Venezuela	1,177
Earnings from unconsolidated affiliates		(822)
Depreciation and amortization	16,852	15,976
Amortization of deferred loan costs	167	167
Foreign currency loss	1,489	2,398
Deferred income taxes	1,059	192
Gain on contingent consideration revaluation		(2,138)
Write-down of fixed assets	383
Loss (gain) on asset sales	103	(77)
Non-cash compensation cost	3,691	3,205
(Increase) decrease:
Receivables	(833)	13,431
Inventory	(3,040)	75
Prepaid expenses and other current assets	953	1,577
Increase (decrease):
Accounts payable	(878)	(1,598)
Other accrued liabilities	(5,966)	(9,505)
Income taxes	(8,887)	(469)
Net cash provided by operating activities	31,212	40,515
Cash flows from investing activities:
Capital expenditures	(18,712)	(23,758)
Business acquisitions, net of cash acquired	(2,949)	(10,175)
Proceeds from sale of assets	35	204
Change related to Venezuelan operations	(620)
Distributions from joint venture		174
Decrease in other assets, net	269	3
Net cash used in investing activities	(21,977)	(33,552)
Cash flows from financing activities:
Net borrowings under revolving credit agreement	15,690	9,800
Deferred consideration payments	(1,000)	(1,000)
Contingent consideration payments	(1,000)
Corporate tax effect from share-based payment arrangements	2,088	1,092
Issuance of common stock from share-based payment arrangements	2,331	4,765
Payments related to withholding tax for share-based payment arrangements	(1,743)	(1,692)
Payments related to purchase of treasury stock	(21,138)	(13,334)
Net cash used in financing activities	(4,772)	(369)
Effect of exchange rate changes on cash	(3,549)	(1,294)
Net increase in cash and cash equivalents	914	5,300
Cash and cash equivalents at beginning of period	34,656	34,201
Cash and cash equivalents at end of period	$ 35,570	$ 39,501

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Summary of Transactions Involving Performance Awards (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance awards, beginning of period	50	57
Granted		17
Vested and settled	(22)	(24)
Cancelled	0	0
Performance awards, end of period	28	50
Performance awards, beginning of period, Weighted Average Fair Value	$ 30.63	$ 25.45
Granted, Weighted Average Fair Value		$ 36.40
Vested and settled, Weighted Average Fair Value	$ 27.66	$ 22.65
Cancelled, Weighted Average Fair Value	$ 0	$ 0
Performance awards, end of period, Weighted Average Fair Value	$ 32.86	$ 30.63
Long Term Performance Stock Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance awards, beginning of period
Granted	23
Cancelled	0	0
Performance awards, end of period	23
Performance awards, beginning of period, Weighted Average Fair Value
Granted, Weighted Average Fair Value	$ 42.25
Cancelled, Weighted Average Fair Value	$ 0	$ 0
Performance awards, end of period, Weighted Average Fair Value	$ 42.25

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ENTITY WIDE DISCLOSURES (Tables)

9 Months Ended

Feb. 28, 2015

Segment Data for our Three Operating Segment

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

	Three Months Ended February 28,						Nine Months Ended February 28,
	2015			2014			2015			2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues:
IHT	$	95,350		$	85,149		$	335,024		$	290,409
MS		64,999			63,440			217,066			200,196
Quest Integrity		14,240			14,647			51,239			47,435
Total	$	174,589		$	163,236		$	603,329		$	538,040
	Three Months Ended February 28,						Nine Months Ended February 28,
	2015			2014			2015			2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Operating income:
IHT	$	7,536		$	3,783		$	41,822		$	31,666
MS		3,357			2,939			18,870			17,120
Quest Integrity		100			1,170			7,217			5,986
Corporate and shared support services		(8,067	)		(6,892	)		(24,484	)		(21,786	)
Total	$	2,926		$	1,000		$	43,425		$	32,986

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Capital expenditures:
IHT	$	2,029	$	2,187	$	5,893	$	5,602
MS		797		1,503		2,884		4,694
Quest Integrity		855		582		2,466		3,257
Corporate and shared support services		3,606		5,867		7,469		10,205
Total	$	7,287	$	10,139	$	18,712	$	23,758
	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Depreciation and amortization:
IHT	$	2,138	$	1,936	$	6,207	$	5,947
MS		1,850		1,801		5,598		5,391
Quest Integrity		1,429		1,343		4,254		4,033
Corporate and shared support services		271		205		793		605
Total	$	5,688	$	5,285	$	16,852	$	15,976

Geographic Breakdown of Revenues and Total Assets

A geographic breakdown of our revenues and total assets are as follows (in thousands):

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues:
United States	$	134,805	$	120,916	$	450,462	$	382,322
Canada		22,454		22,267		94,572		93,621
Europe		9,365		10,448		33,275		31,079
Other foreign countries		7,965		9,605		25,020		31,018
Total	$	174,589	$	163,236	$	603,329	$	538,040

	February 28, 2015		May 31, 2014
	(unaudited)
Total assets:
United States	$	369,808	$	353,624
Canada		61,068		68,515
Europe		32,127		38,870
Other foreign countries		20,548		23,932
Total	$	483,551	$	484,941

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Segment Data for our Three Operating Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Segment Reporting Information [Line Items]
Revenues	$ 174,589	$ 163,236	$ 603,329	$ 538,040
Operating income	2,926	1,000	43,425	32,986
Capital expenditures	7,287	10,139	18,712	23,758
Depreciation and amortization	5,688	5,285	16,852	15,976
Operating Segments | IHT Segment
Segment Reporting Information [Line Items]
Revenues	95,350	85,149	335,024	290,409
Operating income	7,536	3,783	41,822	31,666
Capital expenditures	2,029	2,187	5,893	5,602
Depreciation and amortization	2,138	1,936	6,207	5,947
Operating Segments | MS Segment
Segment Reporting Information [Line Items]
Revenues	64,999	63,440	217,066	200,196
Operating income	3,357	2,939	18,870	17,120
Capital expenditures	797	1,503	2,884	4,694
Depreciation and amortization	1,850	1,801	5,598	5,391
Operating Segments | Quest Integrity
Segment Reporting Information [Line Items]
Revenues	14,240	14,647	51,239	47,435
Operating income	100	1,170	7,217	5,986
Capital expenditures	855	582	2,466	3,257
Depreciation and amortization	1,429	1,343	4,254	4,033
Corporate and shared support services
Segment Reporting Information [Line Items]
Operating income	(8,067)	(6,892)	(24,484)	(21,786)
Capital expenditures	3,606	5,867	7,469	10,205
Depreciation and amortization	$ 271	$ 205	$ 793	$ 605

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VENEZUELAN OPERATIONS

9 Months Ended

Feb. 28, 2015

VENEZUELAN OPERATIONS

16. VENEZUELAN OPERATIONS

We operate a small service location in Punta Fijo, Venezuela, whose annual revenues have historically been less than one percent of our consolidated revenues for all periods presented. Because of the uncertain political environment in Venezuela, starting in the third quarter of fiscal year 2010, we began to account for Venezuelan operations pursuant to accounting guidance for hyperinflationary economies. Following the designation of the Venezuelan economy as hyperinflationary, we ceased taking the effects of currency fluctuations to accumulated other comprehensive income and began reflecting all effects as a component of other income in our statement of operations.

In the third quarter of fiscal year 2014, we began using an alternative Venezuelan, state-run exchange rate, commonly referred to as SICAD-1, to translate local currency financial statements. As a result of the revaluation, we recognized a $1.9 million foreign currency loss in the third quarter of fiscal year 2014. In March 2014, a market-based, state-run exchange, commonly referred to as SICAD-2, was initiated by the Central Bank of Venezuela. As of the beginning of the fourth quarter of fiscal year 2014, Team began using the nascent market-based, state-run exchange rate, commonly referred to as SICAD-2 (approximately 50 Bolivars to the U.S. Dollar) to translate local currency financial statements, changing from the SICAD-1 rate (which fluctuated between 10 and 11.8 Bolivars per U.S. Dollar). As a result, Team incurred an additional $2.1 million foreign currency loss associated with a further revaluation of our Venezuelan business in the fourth quarter of fiscal year 2014.

Prior to February 1, 2015, we included the results of our Venezuelan operations in our consolidated financial statements using the consolidation method of accounting. Venezuelan exchange control regulations have resulted in an other-than-temporary lack of exchangeability between the Venezuelan Bolivar and U.S. Dollar, and have restricted our Venezuelan operations’ ability to pay dividends and obligations denominated in U.S. Dollars. These exchange regulations, combined with other recent Venezuelan regulations, have constrained equipment availability and are now significantly limiting our Venezuelan operations’ ability to maintain normal operations. As a result of these conditions, and in accordance with ASC 810, Consolidation, we began reporting the results of our Venezuelan operations using the cost method of accounting. The change, which we made effective February 1, 2015, resulted in a third quarter 2015 pre-tax charge of $1.2 million. In future periods, our financial results will not include the operating results of our Venezuelan operations. Instead, we will record cash and recognize income from our Venezuelan operations in our consolidated financial statements to the extent we receive payments for obligations or dividends from them.

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Summary of Significant Accounting Policies and Practices - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 30, 2010	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015 Segment	Feb. 28, 2014	May 31, 2014
Significant Accounting Policies [Line Items]
Number of operating segments				3
Reclassification resulting in increase (decrease) in cash flows from operating activities				$ 31,212,000	$ 40,515,000
Reclassification resulting in increase (decrease) in cash flows from financing activities				(4,772,000)	(369,000)
Description of reclassification result				The Company has revised its previously reported condensed consolidated statement of cash flows for an immaterial error associated with the classification of deferred consideration payments associated with our acquisition of TCI Services, Inc. in September 2012. The revision resulted in a $1 million increase in cash flows from operating activities and a corresponding decrease in cash flows from financing activities and had no impact on the Company's financial position or net income for the periods impacted.
Goodwill		108,185,000		108,185,000		113,763,000
Percentage of stakeholders' in which the agreement rewards	5.00%
Percentage of agreed incremental value	35.00%
Actual EBITDA						14,400,000
Stock price		$ 39.7		$ 39.7
Number of shares estimated to be issued to acquire non-controlling interest						826,000
Deferred tax assets recovery from future taxable income percentage				50.00%
Workers compensation our self-insured retention				1,000,000
Automobile liability self-insured retention				500,000
General liability claims we have an effective self-insured retention				3,000,000
Medical claims, our self-insured retention				175,000
Environmental liability claims, our self-insured retention				500,000
Amount of earned but unbilled revenue included in accounts receivable		15,400,000		15,400,000		14,900,000
Options to purchase shares of common stock excluded from the computation of diluted earnings per share		0	0	0	0
Sales Revenue, Net [Member]
Significant Accounting Policies [Line Items]
Number of customers accounted for more than specified percentage of consolidated revenues				0
Minimum | Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Significant Accounting Policies [Line Items]
Percentage of consolidated revenues				10.00%
Prior Period Reclassification Adjustment [Member]
Significant Accounting Policies [Line Items]
Reclassification resulting in increase (decrease) in cash flows from operating activities				1,000,000
Reclassification resulting in increase (decrease) in cash flows from financing activities				$ (1,000,000)
Quest Integrity
Significant Accounting Policies [Line Items]
Purchase percentage of quest	95.00%
Remaining purchase consideration based upon future financial performance	5.00%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Policies)

9 Months Ended

Feb. 28, 2015

Basis for presentation

Basis for presentation. These interim financial statements are unaudited, but in the opinion of our management, reflect all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of results for such periods.

The condensed consolidated balance sheet at May 31, 2014 is derived from the May 31, 2014 audited consolidated financial statements. The results of operations for any interim period are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto contained in our annual report on Form 10-K for the fiscal year ended May 31, 2014.

The Company has revised its previously reported condensed consolidated statement of cash flows for an immaterial error associated with the classification of deferred consideration payments associated with our acquisition of TCI Services, Inc. in September 2012. The revision resulted in a $1.0 million increase in cash flows from operating activities and a corresponding decrease in cash flows from financing activities and had no impact on the Company’s financial position or net income for the periods impacted.

Consolidation

Consolidation. The consolidated financial statements include the accounts of Team, Inc. and our majority-owned subsidiaries where we have control over operating and financial policies. Investments in affiliates in which we have the ability to exert significant influence over operating and financial policies, but where we do not control the operating and financial policies, are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. Effective February 1, 2015, we began reporting the results of our Venezuela operations using the cost method of accounting (see Note 16).

Use of estimates

Use of estimates. Our accounting policies conform to Generally Accepted Accounting Principles in the U.S. (“GAAP”). Our most significant accounting policies are described below. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect our reported financial position and results of operations. We review significant estimates and judgments affecting our consolidated financial statements on a recurring basis and record the effect of any necessary adjustments prior to their publication. Estimates and judgments are based on information available at the time such estimates and judgments are made. Adjustments made with respect to the use of these estimates and judgments often relate to information not previously available. Uncertainties with respect to such estimates and judgments are inherent in the preparation of financial statements. Estimates and judgments are used in, among other things, (1) aspects of revenue recognition, (2) valuation of tangible and intangible assets and subsequent assessments for possible impairment, (3) the fair value of the non-controlling interest in subsidiaries that are not wholly-owned, (4) estimating various factors used to accrue liabilities for workers’ compensation, auto, medical and general liability, (5) establishing an allowance for uncollectible accounts receivable, (6) estimating the useful lives of our assets, (7) assessing future tax exposure and the realization of tax assets and (8) estimating the value associated with contingent consideration payment arrangements.

Fair value of financial instruments

Fair value of financial instruments. Our financial instruments consist primarily of cash, cash equivalents, accounts receivable, accounts payable and debt obligations. The carrying amount of cash, cash equivalents, trade accounts receivable and trade accounts payable are representative of their respective fair values due to the short-term maturity of these instruments. The fair value of our banking facility is representative of the carrying value based upon the variable terms and management’s opinion that the current rates available to us with the same maturity and security structure are equivalent to that of the banking facility.

Cash and cash equivalents

Cash and cash equivalents. Cash and cash equivalents consist of all demand deposits and funds invested in highly liquid short-term investments with original maturities of three months or less.

Inventory

Inventory. Inventory is stated at the lower of cost (first-in, first-out method) or market. Inventory includes material, labor and certain fixed overhead costs.

Property, plant and equipment

Property, plant and equipment. Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Leasehold improvements are amortized over the shorter of their respective useful life or the lease term. Depreciation and amortization of assets are computed by the straight-line method over the following estimated useful lives of the assets:

Classification	Useful Life
Buildings		20-40 years
Leasehold improvements		2-15 years
Machinery and equipment		2-12 years
Furniture and fixtures		2-10 years
ERP system development costs		5-10 years
Computers and computer software		2-5 years
Automobiles		2-5 years

Goodwill, intangible assets and non-controlling interest

Goodwill, intangible assets and non-controlling interest. Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but are instead tested for impairment at least annually in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other (“ASC 350”). Intangible assets with estimated useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment in accordance with ASC 350. We assess goodwill for impairment at the reporting unit level, which we have determined to be the same as our operating segments. Each reporting unit has goodwill relating to past acquisitions.

On May 31, 2014, we completed our annual goodwill impairment test by performing a qualitative analysis that assessed relevant events and circumstances to evaluate whether it was more likely than not that the fair value of our individual reporting units was less than their respective carrying amount of goodwill. If, after assessing the totality of events and circumstances, an entity determines that it is more likely than not that the fair value of a reporting unit is greater than the carrying amount, then the first and second steps of the goodwill impairment test are not necessary. We evaluated considerations under ASC 350, such as macroeconomic effects on our business, industry and market considerations, cost factors that could have a negative effect on cash flows or earnings, overall financial performance, entity-specific events, events affecting reporting units, and any realization of a sustained decrease in the price of our stock. After consideration of the aforementioned events and circumstances, we concluded that it was more likely than not that the fair value of each reporting unit was greater than its respective carrying amount of goodwill. Accordingly, we did not perform the two-step process described above for our fiscal year 2014 annual test. There have been no events that have required an interim assessment of the carrying value of goodwill during the 2015 fiscal year.

There was $108.2 million and $113.8 million of goodwill at February 28, 2015 and May 31, 2014, respectively. A summary of goodwill is as follows (in thousands):

	Nine Months Ended February 28, 2015
	MS			IHT			Quest Integrity			Total
Balance at May 31, 2014	$	19,685		$	63,249		$	30,829		$	113,763
Acquisitions		—			—			—			—
Foreign currency adjustments		(2,120	)		(2,568	)		(890	)		(5,578	)
Balance at February 28, 2015	$	17,565		$	60,681		$	29,939		$	108,185

In November 2010, we purchased 95% of Quest Integrity Group, LLC, a leading provider of proprietary in-line inspection and advanced engineering and assessment services. We expect to purchase the remaining 5% interest (“non-controlling interest”) at a consideration to be determined pursuant to a “Put/Call Agreement” that was executed at the time of the Quest Integrity acquisition. That agreement essentially rewards the 5% stakeholders with 35% of the agreed incremental value of Quest Integrity that is created after the original acquisition. The valuation of Quest Integrity will be made as of the end of fiscal year 2015 and will be determined as a multiple of average EBITDA (earnings before interest, taxes, depreciation and amortization) of Quest Integrity for fiscal years 2014 and 2015, subject to certain adjustments. The incremental purchase price for the non-controlling interests will be based upon the average value of Team’s stock over the ninety trading days prior to May 31, 2015 and recorded as an equity transaction with a corresponding removal of the carrying value of the non-controlling interest. Assuming that Quest Integrity’s actual EBITDA for fiscal year 2014 ($14.4 million) and the first three quarters of fiscal year 2015 plus estimated EBITDA for the fourth quarter of fiscal year 2015, approximates the average of actual EBITDA for fiscal years 2014 and 2015 and that the average closing stock price over the ninety previous trading days ending February 28, 2015 ($39.70) approximates the average closing stock price over the ninety trading days prior to May 31, 2015, we estimate that approximately 826,000 Team shares will be issued to acquire the non-controlling interest. These shares are included as dilutive securities in the earnings per share calculation as set forth herein. This estimate is subject to change based upon actual results for Quest Integrity the remainder of in fiscal year 2015 and the use of Team’s actual average stock price as of the measurement date of May 31, 2015.

Information regarding the change in carrying value of the non-controlling interest is set forth below (in thousands):

Carrying value of non-controlling interest at May 31, 2014	$	5,678
Income attributable to non-controlling interest		241
Other comprehensive loss attributable to non-controlling interest		(60	)
Carrying value of non-controlling interest at February 28, 2015	$	5,859

Income taxes

Income taxes. We follow the guidance of ASC 740, Income Taxes (“ASC 740”) which requires that we use the asset and liability method of accounting for deferred income taxes and provide deferred income taxes for all significant temporary differences. As part of the process of preparing our consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves estimating our actual current tax payable and related tax expense together with assessing temporary differences resulting from differing treatment of certain items, such as depreciation, for tax and accounting purposes. These differences can result in deferred tax assets and liabilities, which are included within our consolidated balance sheet.

In accordance with ASC 740, we are required to assess the likelihood that our deferred tax assets will be realized and, to the extent we believe that it is more likely than not (a likelihood of more than 50%) that some portion or all of the deferred tax assets will not be realized, we must establish a valuation allowance. We consider all available evidence to determine whether, based on the weight of the evidence, a valuation allowance is needed. Evidence used includes information about our current financial position and our results of operations for the current and preceding years, as well as all currently available information about future years, including our anticipated future performance, the reversal of existing taxable temporary differences and tax planning strategies.

Workers' compensation, auto, medical and general liability accruals

Workers’ compensation, auto, medical and general liability accruals. In accordance with ASC 450, Contingencies, we record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We review our loss contingencies on an ongoing basis to ensure that we have appropriate reserves recorded on our consolidated balance sheet. These reserves are based on historical experience with claims incurred but not received, estimates and judgments made by management, applicable insurance coverage for litigation matters, and are adjusted as circumstances warrant. For workers’ compensation, our self-insured retention is $1.0 million and our automobile liability self-insured retention is currently $500,000 per occurrence. For general liability claims, we have an effective self-insured retention of $3.0 million per occurrence. For medical claims, our self-insured retention is $175,000 per individual claimant determined on an

annual basis. For environmental liability claims, our self-insured retention is $500,000 per occurrence. We maintain insurance for claims that exceed such self-retention limits. The insurance is subject to terms, conditions, limitations and exclusions that may not fully compensate us for all losses. Our estimates and judgments could change based on new information, changes in laws or regulations, changes in management’s plans or intentions, or the outcome of legal proceedings, settlements or other factors. If different estimates and judgments were applied with respect to these matters, it is likely that reserves would be recorded for different amounts.

Revenue recognition

Revenue recognition. We determine our revenue recognition guidelines for our operations based on guidance provided in applicable accounting standards and positions adopted by the FASB and the Securities and Exchange Commission (“SEC”). Most of our projects are short-term in nature and we predominantly derive revenues by providing a variety of industrial services on a time and material basis. For all of these services our revenues are recognized when services are rendered or when product is shipped to the job site and risk of ownership passes to the customer. However, due to various contractual terms with our customers, at the end of any reporting period, there may be services that have been rendered but not billed and an accrual of estimated revenue and unbilled receivables is recorded. At February 28, 2015 and May 31, 2014, the amount of earned but unbilled revenue included in accounts receivable was $15.4 million and $14.9 million, respectively.

Allowance for doubtful accounts

Allowance for doubtful accounts. In the ordinary course of business, a portion of our accounts receivable are not collected due to billing disputes, customer bankruptcies, dissatisfaction with the services we performed and other various reasons. We establish an allowance to account for those accounts receivable that will eventually be deemed uncollectible. The allowance for doubtful accounts is based on a combination of our historical experience and management’s review of long outstanding accounts receivable.

Concentration of credit risk

Concentration of credit risk. No single customer accounts for more than 10% of consolidated revenues.

Earnings per share

Earnings per share. Basic earnings per share is computed by dividing net income available to Team shareholders by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per share is computed by dividing net income available to Team shareholders, less income or loss for the period attributable to the non-controlling interest, by the sum of (1) the weighted-average number of shares of common stock outstanding during the period, (2) the dilutive effect of the assumed exercise of share-based compensation using the treasury stock method and (3) the dilutive effect of the assumed conversion of our non-controlling interest to our common stock.

Amounts used in basic and diluted earnings per share, for the three and nine months ended February 28, 2015 and 2014, are as follows (in thousands):

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Weighted-average number of basic shares outstanding		20,560		20,384		20,569		20,432
Stock options, stock units and performance awards		354		614		449		643
Assumed conversion of non-controlling interest		826		195		826		209
Total shares and dilutive securities		21,740		21,193		21,844		21,284

There were no share-based awards outstanding during the three or nine months ended February 28, 2015 and 2014 excluded from the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of common shares during the periods.

Foreign currency

Foreign currency. For subsidiaries whose functional currency is not the U.S. Dollar, assets and liabilities are translated at period ending rates of exchange and revenues and expenses are translated at period average exchange rates. Translation adjustments for the asset and liability accounts are included as a separate component of accumulated other comprehensive loss in shareholders’ equity. Foreign currency transaction gains and losses are included in our condensed consolidated statement of income. Effective December 1, 2009, we began to account for Venezuela as a highly-inflationary economy and the effect of all subsequent currency fluctuations between the Bolivar and the U.S. Dollar are recorded in our condensed consolidated statement of income. Subsequently, effective February 1, 2015, we began reporting the results of our Venezuela operations using the cost method of accounting (see Note 16).

Accounting Principles Not Yet Adopted

Accounting Principles Not Yet Adopted

ASU No. 2014-09. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for us on June 1, 2017. Early application is not permitted. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method or determined the effect ASU 2014-09 will have on our ongoing financial reporting.

XML

Venezuelan Operations - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		3 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014	May 31, 2014	Mar. 31, 2014
Investment in Country with High Inflationary Economy [Line Items]
Percentage of consolidated revenues from small service location			1.00%
Recognized losses related to the Venezuelan currency	$ (673)	$ (1,868)	$ (1,489)	$ (2,398)
Loss on Venezuela deconsolidation	1,177		1,177
SICAD-2
Investment in Country with High Inflationary Economy [Line Items]
Recognized losses related to the Venezuelan currency					$ (2,100)
Foreign currency exchange rate						50
SICAD-2 | Minimum
Investment in Country with High Inflationary Economy [Line Items]
Foreign currency exchange rate						10
SICAD-2 | Maximum
Investment in Country with High Inflationary Economy [Line Items]
Foreign currency exchange rate						11.8

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

9 Months Ended

Feb. 28, 2015

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

Introduction. Unless otherwise indicated, the terms “Team, Inc.,” “Team,” “the Company,” “we,” “our” and “us” are used in this report to refer to Team, Inc., to one or more of our consolidated subsidiaries or to all of them taken as a whole. We are incorporated in the State of Delaware and our company website can be found at www.teamindustrialservices.com. Our stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “TISI” and our fiscal year ends on May 31 of each calendar year.

We are a leading provider of specialty industrial services, including inspection and assessment, required in maintaining high temperature and high pressure piping systems and vessels that are utilized extensively in the refining, petrochemical, power, pipeline and other heavy industries. We conduct operations in three segments: Inspection and Heat Treating Services Group (“IHT”), Mechanical Services Group (“MS”) and Quest Integrity Group (“Quest Integrity”). While our services are aligned in three business groups, we believe our services broadly fall into three different classifications that have unique customer demand drivers: inspection and assessment services, turnaround services and on-stream services.

Inspection and assessment services are offered in both IHT and Quest Integrity. IHT provides basic and advanced non-destructive testing services for the process, pipeline and power sectors, pipeline integrity management services, as well as associated engineering and assessment services. These services can be offered while facilities are running (on-stream), during facility turnarounds or during new construction or expansion activities. Quest Integrity provides integrity and reliability management solutions for the process, pipeline and power sectors. These solutions encompass two broadly-defined disciplines: (1) highly specialized in-line inspection services for unpiggable process piping and pipelines using proprietary in-line inspection tools and analytical software; and (2) advanced condition assessment services through a multi-disciplined engineering team. We believe there is a general growth in market demand for inspection and assessment services as improved inspection technologies enable better information about asset reliability to be available to facility owners and operators.

Turnaround services are offered in both IHT and MS. These services are project-related and demand is a function of the number and scope of scheduled and unscheduled facility turnarounds as well as new industrial facility construction or expansion. Turnaround services include the field machining, technical bolting, field valve repair, heat exchanger repair, and isolation test plugging services that are part of MS and the field heat treating services that are part of IHT.

On-stream services are offered by MS and represent the services offered while plants are operating and under pressure. These services include leak repair, fugitive emissions control and hot tapping. We believe demand for on-stream services is a function of the population of the existing infrastructure of operating industrial facilities.

We offer these services in over 125 locations throughout the world. Our industrial services are available 24 hours a day, 7 days a week, 365 days a year. We market our services to companies in a diverse array of heavy industries which include the petrochemical, refining, power, pipeline, steel, pulp and paper industries, as well as municipalities, shipbuilding, original equipment manufacturers (“OEMs”), distributors, and some of the world’s largest engineering and construction firms. Our services are also provided across a broad geographic reach.

Basis for presentation. These interim financial statements are unaudited, but in the opinion of our management, reflect all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of results for such periods.

The condensed consolidated balance sheet at May 31, 2014 is derived from the May 31, 2014 audited consolidated financial statements. The results of operations for any interim period are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto contained in our annual report on Form 10-K for the fiscal year ended May 31, 2014.

The Company has revised its previously reported condensed consolidated statement of cash flows for an immaterial error associated with the classification of deferred consideration payments associated with our acquisition of TCI Services, Inc. in September 2012. The revision resulted in a $1.0 million increase in cash flows from operating activities and a corresponding decrease in cash flows from financing activities and had no impact on the Company’s financial position or net income for the periods impacted.

Consolidation. The consolidated financial statements include the accounts of Team, Inc. and our majority-owned subsidiaries where we have control over operating and financial policies. Investments in affiliates in which we have the ability to exert significant influence over operating and financial policies, but where we do not control the operating and financial policies, are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. Effective February 1, 2015, we began reporting the results of our Venezuela operations using the cost method of accounting (see Note 16).

Use of estimates. Our accounting policies conform to Generally Accepted Accounting Principles in the U.S. (“GAAP”). Our most significant accounting policies are described below. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect our reported financial position and results of operations. We review significant estimates and judgments affecting our consolidated financial statements on a recurring basis and record the effect of any necessary adjustments prior to their publication. Estimates and judgments are based on information available at the time such estimates and judgments are made. Adjustments made with respect to the use of these estimates and judgments often relate to information not previously available. Uncertainties with respect to such estimates and judgments are inherent in the preparation of financial statements. Estimates and judgments are used in, among other things, (1) aspects of revenue recognition, (2) valuation of tangible and intangible assets and subsequent assessments for possible impairment, (3) the fair value of the non-controlling interest in subsidiaries that are not wholly-owned, (4) estimating various factors used to accrue liabilities for workers’ compensation, auto, medical and general liability, (5) establishing an allowance for uncollectible accounts receivable, (6) estimating the useful lives of our assets, (7) assessing future tax exposure and the realization of tax assets and (8) estimating the value associated with contingent consideration payment arrangements.

Fair value of financial instruments. Our financial instruments consist primarily of cash, cash equivalents, accounts receivable, accounts payable and debt obligations. The carrying amount of cash, cash equivalents, trade accounts receivable and trade accounts payable are representative of their respective fair values due to the short-term maturity of these instruments. The fair value of our banking facility is representative of the carrying value based upon the variable terms and management’s opinion that the current rates available to us with the same maturity and security structure are equivalent to that of the banking facility.

Cash and cash equivalents. Cash and cash equivalents consist of all demand deposits and funds invested in highly liquid short-term investments with original maturities of three months or less.

Inventory. Inventory is stated at the lower of cost (first-in, first-out method) or market. Inventory includes material, labor and certain fixed overhead costs.

Property, plant and equipment. Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Leasehold improvements are amortized over the shorter of their respective useful life or the lease term. Depreciation and amortization of assets are computed by the straight-line method over the following estimated useful lives of the assets:

Classification	Useful Life
Buildings		20-40 years
Leasehold improvements		2-15 years
Machinery and equipment		2-12 years
Furniture and fixtures		2-10 years
ERP system development costs		5-10 years
Computers and computer software		2-5 years
Automobiles		2-5 years

Goodwill, intangible assets and non-controlling interest. Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but are instead tested for impairment at least annually in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other (“ASC 350”). Intangible assets with estimated useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment in accordance with ASC 350. We assess goodwill for impairment at the reporting unit level, which we have determined to be the same as our operating segments. Each reporting unit has goodwill relating to past acquisitions.

On May 31, 2014, we completed our annual goodwill impairment test by performing a qualitative analysis that assessed relevant events and circumstances to evaluate whether it was more likely than not that the fair value of our individual reporting units was less than their respective carrying amount of goodwill. If, after assessing the totality of events and circumstances, an entity determines that it is more likely than not that the fair value of a reporting unit is greater than the carrying amount, then the first and second steps of the goodwill impairment test are not necessary. We evaluated considerations under ASC 350, such as macroeconomic effects on our business, industry and market considerations, cost factors that could have a negative effect on cash flows or earnings, overall financial performance, entity-specific events, events affecting reporting units, and any realization of a sustained decrease in the price of our stock. After consideration of the aforementioned events and circumstances, we concluded that it was more likely than not that the fair value of each reporting unit was greater than its respective carrying amount of goodwill. Accordingly, we did not perform the two-step process described above for our fiscal year 2014 annual test. There have been no events that have required an interim assessment of the carrying value of goodwill during the 2015 fiscal year.

There was $108.2 million and $113.8 million of goodwill at February 28, 2015 and May 31, 2014, respectively. A summary of goodwill is as follows (in thousands):

	Nine Months Ended February 28, 2015
	MS			IHT			Quest Integrity			Total
Balance at May 31, 2014	$	19,685		$	63,249		$	30,829		$	113,763
Acquisitions		—			—			—			—
Foreign currency adjustments		(2,120	)		(2,568	)		(890	)		(5,578	)
Balance at February 28, 2015	$	17,565		$	60,681		$	29,939		$	108,185

In November 2010, we purchased 95% of Quest Integrity Group, LLC, a leading provider of proprietary in-line inspection and advanced engineering and assessment services. We expect to purchase the remaining 5% interest (“non-controlling interest”) at a consideration to be determined pursuant to a “Put/Call Agreement” that was executed at the time of the Quest Integrity acquisition. That agreement essentially rewards the 5% stakeholders with 35% of the agreed incremental value of Quest Integrity that is created after the original acquisition. The valuation of Quest Integrity will be made as of the end of fiscal year 2015 and will be determined as a multiple of average EBITDA (earnings before interest, taxes, depreciation and amortization) of Quest Integrity for fiscal years 2014 and 2015, subject to certain adjustments. The incremental purchase price for the non-controlling interests will be based upon the average value of Team’s stock over the ninety trading days prior to May 31, 2015 and recorded as an equity transaction with a corresponding removal of the carrying value of the non-controlling interest. Assuming that Quest Integrity’s actual EBITDA for fiscal year 2014 ($14.4 million) and the first three quarters of fiscal year 2015 plus estimated EBITDA for the fourth quarter of fiscal year 2015, approximates the average of actual EBITDA for fiscal years 2014 and 2015 and that the average closing stock price over the ninety previous trading days ending February 28, 2015 ($39.70) approximates the average closing stock price over the ninety trading days prior to May 31, 2015, we estimate that approximately 826,000 Team shares will be issued to acquire the non-controlling interest. These shares are included as dilutive securities in the earnings per share calculation as set forth herein. This estimate is subject to change based upon actual results for Quest Integrity the remainder of in fiscal year 2015 and the use of Team’s actual average stock price as of the measurement date of May 31, 2015.

Information regarding the change in carrying value of the non-controlling interest is set forth below (in thousands):

Carrying value of non-controlling interest at May 31, 2014	$	5,678
Income attributable to non-controlling interest		241
Other comprehensive loss attributable to non-controlling interest		(60	)
Carrying value of non-controlling interest at February 28, 2015	$	5,859

Income taxes. We follow the guidance of ASC 740, Income Taxes (“ASC 740”) which requires that we use the asset and liability method of accounting for deferred income taxes and provide deferred income taxes for all significant temporary differences. As part of the process of preparing our consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves estimating our actual current tax payable and related tax expense together with assessing temporary differences resulting from differing treatment of certain items, such as depreciation, for tax and accounting purposes. These differences can result in deferred tax assets and liabilities, which are included within our consolidated balance sheet.

In accordance with ASC 740, we are required to assess the likelihood that our deferred tax assets will be realized and, to the extent we believe that it is more likely than not (a likelihood of more than 50%) that some portion or all of the deferred tax assets will not be realized, we must establish a valuation allowance. We consider all available evidence to determine whether, based on the weight of the evidence, a valuation allowance is needed. Evidence used includes information about our current financial position and our results of operations for the current and preceding years, as well as all currently available information about future years, including our anticipated future performance, the reversal of existing taxable temporary differences and tax planning strategies.

Workers’ compensation, auto, medical and general liability accruals. In accordance with ASC 450, Contingencies, we record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We review our loss contingencies on an ongoing basis to ensure that we have appropriate reserves recorded on our consolidated balance sheet. These reserves are based on historical experience with claims incurred but not received, estimates and judgments made by management, applicable insurance coverage for litigation matters, and are adjusted as circumstances warrant. For workers’ compensation, our self-insured retention is $1.0 million and our automobile liability self-insured retention is currently $500,000 per occurrence. For general liability claims, we have an effective self-insured retention of $3.0 million per occurrence. For medical claims, our self-insured retention is $175,000 per individual claimant determined on an

annual basis. For environmental liability claims, our self-insured retention is $500,000 per occurrence. We maintain insurance for claims that exceed such self-retention limits. The insurance is subject to terms, conditions, limitations and exclusions that may not fully compensate us for all losses. Our estimates and judgments could change based on new information, changes in laws or regulations, changes in management’s plans or intentions, or the outcome of legal proceedings, settlements or other factors. If different estimates and judgments were applied with respect to these matters, it is likely that reserves would be recorded for different amounts.

Revenue recognition. We determine our revenue recognition guidelines for our operations based on guidance provided in applicable accounting standards and positions adopted by the FASB and the Securities and Exchange Commission (“SEC”). Most of our projects are short-term in nature and we predominantly derive revenues by providing a variety of industrial services on a time and material basis. For all of these services our revenues are recognized when services are rendered or when product is shipped to the job site and risk of ownership passes to the customer. However, due to various contractual terms with our customers, at the end of any reporting period, there may be services that have been rendered but not billed and an accrual of estimated revenue and unbilled receivables is recorded. At February 28, 2015 and May 31, 2014, the amount of earned but unbilled revenue included in accounts receivable was $15.4 million and $14.9 million, respectively.

Allowance for doubtful accounts. In the ordinary course of business, a portion of our accounts receivable are not collected due to billing disputes, customer bankruptcies, dissatisfaction with the services we performed and other various reasons. We establish an allowance to account for those accounts receivable that will eventually be deemed uncollectible. The allowance for doubtful accounts is based on a combination of our historical experience and management’s review of long outstanding accounts receivable.

Concentration of credit risk. No single customer accounts for more than 10% of consolidated revenues.

Earnings per share. Basic earnings per share is computed by dividing net income available to Team shareholders by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per share is computed by dividing net income available to Team shareholders, less income or loss for the period attributable to the non-controlling interest, by the sum of (1) the weighted-average number of shares of common stock outstanding during the period, (2) the dilutive effect of the assumed exercise of share-based compensation using the treasury stock method and (3) the dilutive effect of the assumed conversion of our non-controlling interest to our common stock.

Amounts used in basic and diluted earnings per share, for the three and nine months ended February 28, 2015 and 2014, are as follows (in thousands):

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Weighted-average number of basic shares outstanding		20,560		20,384		20,569		20,432
Stock options, stock units and performance awards		354		614		449		643
Assumed conversion of non-controlling interest		826		195		826		209
Total shares and dilutive securities		21,740		21,193		21,844		21,284

There were no share-based awards outstanding during the three or nine months ended February 28, 2015 and 2014 excluded from the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of common shares during the periods.

Foreign currency. For subsidiaries whose functional currency is not the U.S. Dollar, assets and liabilities are translated at period ending rates of exchange and revenues and expenses are translated at period average exchange rates. Translation adjustments for the asset and liability accounts are included as a separate component of accumulated other comprehensive loss in shareholders’ equity. Foreign currency transaction gains and losses are included in our condensed consolidated statement of income. Effective December 1, 2009, we began to account for Venezuela as a highly-inflationary economy and the effect of all subsequent currency fluctuations between the Bolivar and the U.S. Dollar are recorded in our condensed consolidated statement of income. Subsequently, effective February 1, 2015, we began reporting the results of our Venezuela operations using the cost method of accounting (see Note 16).

Accounting Principles Not Yet Adopted

ASU No. 2014-09. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for us on June 1, 2017. Early application is not permitted. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method or determined the effect ASU 2014-09 will have on our ongoing financial reporting.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Feb. 28, 2015	May 31, 2014
Receivables, allowance	$ 4,190	$ 4,784
Intangible assets, accumulated amortization	$ 15,058	$ 12,698
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued
Common stock, par value	$ 0.30	$ 0.30
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	20,788,784	20,477,938
Treasury stock at cost, shares	546,977	0

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SHARE-BASED COMPENSATION

9 Months Ended

Feb. 28, 2015

SHARE-BASED COMPENSATION

11. SHARE-BASED COMPENSATION

We have adopted stock incentive plans and other arrangements pursuant to which our Board of Directors (the “Board”) may grant stock options, restricted stock, stock units, stock appreciation rights, common stock or performance awards to officers, directors and key employees. At February 28, 2015, there were approximately 1.0 million stock options, restricted stock units and performance awards outstanding to officers, directors and key employees. The exercise price, terms and other conditions applicable to each form of share-based compensation under our plans are generally determined by the Compensation Committee of our Board at the time of grant and may vary.

Our share-based payments consist primarily of stock options, stock units, common stock and performance awards. The governance of our share-based compensation does not directly limit the number of future awards. However, the total number of shares ultimately issued may not exceed the total number of shares cumulatively authorized, which is 7,120,000 at February 28, 2015. Shares issued in connection with our share-based compensation are issued out of authorized but unissued common stock. Compensation expense related to share-based compensation totaled $3.7 million and $3.2 million for the nine months ended February 28, 2015 and 2014, respectively. At February 28, 2015, $11.8 million of unrecognized compensation expense related to share-based compensation is expected to be recognized over a remaining weighted-average period of 2.8 years. The tax benefit derived when share-based awards result in a tax deduction for the company was $2.1 million and $1.1 million for the nine months ended February 28, 2015 and 2014, respectively.

We determine the fair value of each stock option at the grant date using a Black-Scholes model and recognize the resulting expense of our stock option awards over the period during which an employee is required to provide services in exchange for the awards, usually the vesting period. There was no compensation expense related to stock options for the nine months ended February 28, 2015 and 2014 as all stock option awards were fully vested. Our options typically vest in equal annual installments over a four year service period. Expense related to an option grant is recognized on a straight line basis over the specified vesting period for those options. Stock options generally have a ten year term. Transactions involving our stock options during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015					Nine Months Ended February 28, 2014
	(unaudited)					(unaudited)
	No. of Options			Weighted Average Exercise Price		No. of Options			Weighted Average Exercise Price
	(in thousands)					(in thousands)
Shares under option, beginning of period		816		$	19.61		1,052		$	20.24
Changes during the period:
Granted		—		$	—		—		$	—
Exercised		(206	)	$	11.35		(195	)	$	24.48
Cancelled		—		$	—		—		$	—
Expired		—		$	—		—		$	—
Shares under option, end of period		610		$	22.39		857		$	19.28
Exercisable at end of period		610		$	22.39		857		$	19.28

Options exercisable at February 28, 2015 had a weighted-average remaining contractual life of 2.0 years. For total options outstanding at February 28, 2015, the range of exercise prices and remaining contractual lives are as follows:

Range of Prices	No. of Options		Weighted Average Exercise Price		Weighted Average Remaining Life
	(in thousands)				(in years)
$9.23 to $9.62		17	$	9.23		0.5
$9.63 to $12.82		61	$	11.74		1.1
$12.83 to $16.03		208	$	14.78		1.4
$16.04 to $32.05		324	$	29.92		2.6
		610	$	22.39		2.0

Performance awards are settled with common stock upon vesting unless it is not legally feasible to issue shares, in which case the value of the award is settled in cash. We determine the fair value of each performance award based on the market price on the date of grant. Performance awards granted to the Chairman of our Board vest over the longer of four years or the achievement of performance goals based upon our future results of operations. Compensation expense related to performance awards totaled $0.4 million for the nine months ended February 28, 2015 and 2014. Transactions involving our performance awards during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015					Nine Months Ended February 28, 2014
	(unaudited)					(unaudited)
	No. of Performance Awards			Weighted Average Fair Value		No. of Performance Awards			Weighted Average Fair Value
	(in thousands)					(in thousands)
Performance awards, beginning of period		50		$	30.63		57		$	25.45
Changes during the period:
Granted		—		$	—		17		$	36.40
Vested and settled		(22	)	$	27.66		(24	)	$	22.65
Cancelled		—		$	—		—		$	—
Performance awards, end of period		28		$	32.86		50		$	30.63

Under a new performance stock unit award program adopted on November 4, 2014, Long-Term Performance Stock Unit (“LTPSU”) awards granted to our Executive Officers are subject to a three year performance period and a concurrent three year service period. Under this program, the Company communicates “target awards” to the Executive Officers at the beginning of a performance period. The performance target is based on results of operations over the three year performance period with possible payouts ranging from 0% to 300% of the “target awards”. LTPSU awards cliff vest with achievement of the performance goals and completion of the three year service period. Settlement occurs with common stock within 20 business days of vesting. We determine the fair value of each LTPSU award based on the market price on the date of grant. Compensation expense is recognized on a straight-line basis over the vesting term of three years based upon the probable performance target that will be met. Compensation expense of $0.1 million related to performance awards was recognized for the nine months ended February 28, 2015. Transactions involving our performance awards during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015				Nine Months Ended February 28, 2014
	(unaudited)				(unaudited)
	No. of Long-Term Performance Stock Units		Weighted Average Fair Value		No. of Long-Term Performance Stock Units		Weighted Average Fair Value
	(in thousands)				(in thousands)
Long-term performance stock units, beginning of period		—	$	—		—	$	—
Changes during the period:
Granted		23	$	42.25		—	$	—
Vested and settled		—	$	—		—	$	—
Cancelled		—	$	—		—	$	—
Long-term performance stock units, end of period		23	$	42.25		—	$	—

Stock units are settled with common stock upon vesting unless it is not legally feasible to issue shares, in which case the value of the award is settled in cash. We determine the fair value of each stock unit based on the market price on the date of grant. Stock units generally vest in annual installments over four years and the expense associated with the units is recognized over the same vesting period. We also grant common stock to our directors which typically vest immediately. Compensation expense related to stock units and director stock grants totaled $3.2 million for the nine months ended February 28, 2015 and $2.8 million for the nine months ended February 28, 2014. Transactions involving our stock units and director stock grants during the nine months ended February 28, 2015 and 2014 are summarized below:

	Nine Months Ended February 28, 2015					Nine Months Ended February 28, 2014
	(unaudited)					(unaudited)
	No. of Stock Units			Weighted Average Fair Value		No. of Stock Units			Weighted Average Fair Value
	(in thousands)					(in thousands)
Stock and stock units, beginning of period		310		$	31.42		329		$	26.07
Changes during the period:
Granted		156		$	39.51		136		$	36.71
Vested and settled		(133	)	$	29.21		(138	)	$	24.34
Cancelled		(7	)	$	32.10		(16	)	$	27.94
Stock and stock units, end of period		326		$	36.15		311		$	31.39

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Document and Entity Information	9 Months Ended
	Feb. 28, 2015	Mar. 30, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	TISI
Entity Registrant Name	TEAM INC
Entity Central Index Key	0000318833
Current Fiscal Year End Date	--05-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		20,788,784

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OTHER COMPREHENSIVE INCOME

9 Months Ended

Feb. 28, 2015

OTHER COMPREHENSIVE INCOME

12. OTHER COMPREHENSIVE INCOME

A summary of changes in other comprehensive income (loss) included within shareholders’ equity is as follows (in thousands):

	Nine Months Ended February 28, 2015										Nine Months Ended February 28, 2014
	(unaudited)										(unaudited)
	Foreign Currency Translation Adjustments			Foreign Currency Hedge		Tax Provision		Total			Foreign Currency Translation Adjustments			Foreign Currency Hedge			Tax Provision			Total
Balance, beginning of period	$	(5,145	)	$	1,229	$	1,237	$	(2,679	)	$	(3,532	)	$	2,004		$	(261	)	$	(1,789	)
Other comprehensive income (loss) before tax		(14,791	)		2,966		1,956		(9,869	)		(2,925	)		(856	)		1,944			(1,837	)
Non-controlling interest		60			—		—		60			5			—			—			5
Balance, end of period	$	(19,876	)	$	4,195	$	3,193	$	(12,488	)	$	(6,452	)	$	1,148		$	1,683		$	(3,621	)

The following table represents the related tax effects allocated to each component of other comprehensive income (in thousands):

	Nine Months Ended February 28, 2015									Nine Months Ended February 28, 2014
	(unaudited)									(unaudited)
	Gross Amount			Tax Effect			Net Amount			Gross Amount			Tax Effect		Net Amount
Foreign currency translation adjustments	$	(14,791	)	$	3,108		$	(11,683	)	$	(2,925	)	$	1,617	$	(1,308	)
Foreign currency hedge		2,966			(1,152	)		1,814			(856	)		327		(529	)
Total	$	(11,825	)	$	1,956		$	(9,869	)	$	(3,781	)	$	1,944	$	(1,837	)

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Condensed Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Revenues	$ 174,589	$ 163,236	$ 603,329	$ 538,040
Operating expenses	127,877	121,540	421,448	382,532
Gross margin	46,712	41,696	181,881	155,508
Selling, general and administrative expenses	43,786	40,725	138,456	125,482
Earnings from unconsolidated affiliates		29		822
Gain on revaluation of contingent consideration				2,138
Operating income	2,926	1,000	43,425	32,986
Interest expense, net	560	660	1,786	2,079
Loss on investment in Venezuela	1,177		1,177
Foreign currency loss	673	1,868	1,489	2,398
Earnings (loss) before income taxes	516	(1,528)	38,973	28,509
Less: Provision for income taxes	187	(557)	14,031	10,406
Net income (loss)	329	(971)	24,942	18,103
Less: Income attributable to non-controlling interest	25	39	241	178
Net income (loss) available to Team shareholders	$ 304	$ (1,010)	$ 24,701	$ 17,925
Net income (loss) per share: Basic	$ 0.01	$ (0.05)	$ 1.20	$ 0.88
Net income (loss) per share: Diluted	$ 0.01	$ (0.05)	$ 1.13	$ 0.84

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ASSETS HELD FOR SALE

9 Months Ended

Feb. 28, 2015

ASSETS HELD FOR SALE

6. ASSETS HELD FOR SALE

Assets held for sale consists of $5.2 million related to approximately fifty acres of undeveloped land purchased in October 2007 on which we had previously planned to construct future facilities in Pearland, Texas. During the fourth quarter of fiscal year 2012, we decided not to proceed with construction of the future facilities at this location. The property is being actively marketed using the services of a broker.

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PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Feb. 28, 2015

PROPERTY, PLANT AND EQUIPMENT

5. PROPERTY, PLANT AND EQUIPMENT

A summary of property, plant and equipment as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015			May 31, 2014
	(unaudited)
Land	$	3,024		$	3,078
Buildings and leasehold improvements		27,081			26,793
Machinery and equipment		149,901			150,050
Furniture and fixtures		5,558			5,530
Capitalized ERP system development costs		11,772			4,655
Computers and computer software		6,895			6,842
Automobiles		3,361			3,550
Construction in progress		2,896			3,123
Total		210,488			203,621
Accumulated depreciation and amortization		(117,364	)		(113,660	)
Property, plant and equipment, net	$	93,124		$	89,961

In the second quarter of fiscal year 2014, we initiated the design and implementation of a new enterprise resource planning (“ERP”) system, which we will begin installing during fiscal year 2016. Amortization of the ERP system development costs will be computed by the straight-line method, commencing in the period when substantial testing is completed and the asset is ready for its intended use. Through February 28, 2015, we have capitalized $11.8 million associated with the project.

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REPURCHASE OF COMMON STOCK

9 Months Ended

Feb. 28, 2015

REPURCHASE OF COMMON STOCK

17. REPURCHASE OF COMMON STOCK

On October 1, 2013, our Board approved an initial $25 million stock repurchase plan, superseding and replacing our previous stock repurchase plan. During the second quarter of fiscal year 2014, we repurchased 369,900 shares for a total cost of $13.3 million. These shares, along with 89,569 shares purchased under a previous plan in a prior period at a cost of $1.3 million, were retired and not included in common stock issued and outstanding as of May 31, 2014. The retirement of the shares purchased resulted in a reduction in common stock of $0.1 million, a reduction of $2.2 million to additional paid-in capital, and a $12.3 million reduction in retained earnings.

On June 23, 2014 our Board authorized an increase in the stock repurchase plan limit to $50 million (net of the $13.3 million repurchased in the second quarter of fiscal year 2014). During the third quarter of fiscal year 2015, we repurchased 546,977 shares for a total cost of $21.1 million. At February 28, 2015 $15.5 million remained available to repurchase shares under the stock repurchase plan.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Feb. 28, 2015

COMMITMENTS AND CONTINGENCIES

13. COMMITMENTS AND CONTINGENCIES

Con Ed Matter—We have, from time to time, provided temporary leak repair services for the steam operations of Consolidated Edison Company of New York (“Con Ed”) located in New York City. In July 2007, a Con Ed steam main located in midtown Manhattan ruptured causing one death and other injuries and property damage. As of February 28, 2015, ninety-five lawsuits have been filed against Con Ed, the City of New York and Team in the Supreme Courts of New York located in Kings, New York and Bronx County, alleging that our temporary leak repair services may have contributed to the cause of the rupture. The lawsuits seek generally unspecified compensatory damages for personal injury, property damage and business interruption. Additionally, on March 31, 2008, we received a letter from Con Ed alleging that our contract with Con Ed requires us to indemnify and defend Con Ed for additional claims filed against Con Ed as a result of the rupture. Con Ed filed an action to join Team and the City of New York as defendants in all lawsuits filed against Con Ed that did not include Team and the City of New York as direct defendants. We are vigorously defending the lawsuits and Con Ed’s claim for indemnification. We are unable to estimate the amount of liability to us, if any, associated with these lawsuits and the claim for indemnification. We maintain insurance coverage, subject to a deductible limit of $250,000, which we believe should cover these claims. We have not accrued any liability in excess of the deductible limit for the lawsuits. We do not believe the ultimate outcome of these matters will have a material adverse effect on our financial position, results of operations or cash flows.

In December 2014, our subsidiary, Quest Integrity, filed three patent infringement lawsuits against three different defendants. Quest Integrity alleges that the three defendants infringed Quest Integrity’s patent, entitled “2D and 3D Display System and Method for Furnace Tube Inspection”. This Quest Integrity patent provides a system and method for displaying inspection data collected during the inspection of furnace tubes in petroleum and petro-chemical refineries. The subject patent litigation is specific to the visual display of the collected data and does not relate to Quest Integrity’s underlying advanced inspection technology.  In these lawsuits Quest Integrity is seeking temporary and permanent injunctive relief, as well as money damages. Defendants have denied they infringe any valid claim of the patent and are contesting the allegations.

We are involved in various other lawsuits and are subject to various claims and proceedings encountered in the normal conduct of business. In our opinion, any uninsured losses that might arise from these lawsuits and proceedings will not have a materially adverse effect on our consolidated financial statements.

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LONG-TERM DEBT, DERIVATIVES AND LETTERS OF CREDIT

9 Months Ended

Feb. 28, 2015

LONG-TERM DEBT, DERIVATIVES AND LETTERS OF CREDIT

9. LONG-TERM DEBT, DERIVATIVES AND LETTERS OF CREDIT

Our banking credit facility (“Credit Facility”) with our banking syndicate has borrowing capacity of up to $150 million in multiple currencies, is secured by virtually all of our domestic assets and a majority of the stock of our foreign subsidiaries, and matures in July 2016. In connection with a prior renewal of the Credit Facility, we are amortizing $0.8 million of associated debt issuance costs over the life of the Credit Facility. The Credit Facility bears interest based on a variable Eurodollar rate option (LIBOR plus 1.75% margin at February 28, 2015) and has commitment fees of 0.30% on unused borrowing capacity. At February 28, 2015 we had approximately $50 million of borrowing capacity on our Credit Facility.

In order to secure our casualty insurance programs we are required to post letters of credit generally issued by a bank as collateral. A letter of credit commits the issuer to remit specified amounts to the holder, if the holder demonstrates that we failed to meet our obligations under the letter of credit. If this were to occur, we would be obligated to reimburse the issuer for any payments the issuer was required to remit to the holder of the letter of credit. We were contingently liable for outstanding stand-by letters of credit totaling $13.1 million at February 28, 2015 and $13.6 million at May 31, 2014. Outstanding letters of credit reduce amounts available under our Credit Facility and are considered as having been funded for purposes of calculating our financial covenants under the Credit Facility.

ASC 815, Derivatives and Hedging, established accounting and reporting standards requiring that derivative instruments be recorded at fair value and included in the consolidated balance sheet as assets or liabilities. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation, which is established at the inception date of a derivative. Special accounting for derivatives qualifying as fair value hedges allows derivatives’ gains and losses to offset related results on the hedged item in the consolidated statement of income. For derivative instruments designated as cash flow hedges, changes in fair value, to the extent the hedge is effective, are recognized in other comprehensive income until the hedged item is recognized in earnings. Hedge effectiveness is measured at least quarterly based on the relative cumulative changes in fair value between the derivative contract and the hedged item over time. Credit risks related to derivatives include the possibility that the counter-party will not fulfill the terms of the contract. We considered counter-party credit risk to our derivative contracts when valuing our derivative instruments.

Our borrowing of €12.3 million under the Credit Facility serves as an economic hedge of our net investment in our European operations as fluctuations in the fair value of the borrowing attributable to the U.S. Dollar/Euro spot rate will offset translation gains or losses attributable to our investment in our European operations. At February 28, 2015, the €12.3 million borrowing had a U.S. Dollar value of $13.8 million.

The amounts recognized in other comprehensive income, and reclassified into income, for the three and nine months ended February 28, 2015 and 2014, are as follows (in thousands):

	Gain (Loss) Recognized in Other Comprehensive Income					Gain (Loss) Reclassified from Other Comprehensive Income  to Earnings				Gain (Loss) Recognized in Other Comprehensive Income					Gain (Loss) Reclassified from Other Comprehensive Income to Earnings
	Three Months Ended February 28,					Three Months Ended February 28,				Nine Months Ended February 28,					Nine Months Ended February 28,
	(unaudited)					(unaudited)				(unaudited)					(unaudited)
	2015		2014			2015		2014		2015		2014			2015		2014
Net investment hedge	$	1,527	$	(94	)	$	—	$	—	$	2,966	$	(856	)	$	—	$	—

The following table presents the fair value totals and balance sheet classification for derivatives designated as hedges under ASC 815 (in thousands):

February 28, 2015

May 31, 2014

(unaudited)

Classification

Balance Sheet Location

Fair Value

Classification

Balance Sheet Location

Fair Value

Net investment hedge

Liability

Long-term debt

$

(4,195

)

Liability

Long-term debt

$

(1,229

)

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Summary of Transactions Involving Stock Units and Director Stock Grants (Detail) (Stock and Stock Units, USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Stock and Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance awards, beginning of period	310	329
Granted, No. of Stock Units	156	136
Vested and settled, No. of Stock Units	(133)	(138)
Cancelled, No. of Stock Units	(7)	(16)
Performance awards, end of period	326	311
Performance awards, beginning of period, Weighted Average Fair Value	$ 31.42	$ 26.07
Granted, Weighted Average Fair Value	$ 39.51	$ 36.71
Vested and settled, Weighted Average Fair Value	$ 29.21	$ 24.34
Cancelled, Weighted Average Fair Value	$ 32.10	$ 27.94
Performance awards, end of period, Weighted Average Fair Value	$ 36.15	$ 31.39

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INTANGIBLE ASSETS

9 Months Ended

Feb. 28, 2015

INTANGIBLE ASSETS

7. INTANGIBLE ASSETS

A summary of intangible assets as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015							May 31, 2014
	(unaudited)
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	22,669	$	(8,521	)	$	14,148	$	22,424	$	(6,739	)	$	15,685
Non-compete agreements		3,432		(3,335	)		97		3,667		(3,430	)		237
Trade names		4,325		(942	)		3,383		4,325		(717	)		3,608
Technology		5,112		(2,097	)		3,015		5,112		(1,698	)		3,414
Licenses		683		(163	)		520		683		(114	)		569
Total	$	36,221	$	(15,058	)	$	21,163	$	36,211	$	(12,698	)	$	23,513

Amortization expense was $0.9 million for the three months ended February 28, 2015 and 2014. Amortization expense was $2.8 million for the nine months ended February 28, 2015 and 2014.

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OTHER ACCRUED LIABILITIES

9 Months Ended

Feb. 28, 2015

OTHER ACCRUED LIABILITIES

8. OTHER ACCRUED LIABILITIES

A summary of other accrued liabilities as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015		May 31, 2014
	(unaudited)
Payroll and other compensation expenses	$	21,539	$	28,737
Insurance accruals		6,180		5,897
Property, sales and other non-income related taxes		1,583		2,381
Lease commitments		1,811		1,881
Deferred revenue		1,299		1,198
Other		7,185		8,297
Total	$	39,597	$	48,391

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FAIR VALUE MEASUREMENTS

9 Months Ended

Feb. 28, 2015

FAIR VALUE MEASUREMENTS

10. FAIR VALUE MEASUREMENTS

We apply the provisions of ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which among other things, requires enhanced disclosures about assets and liabilities carried at fair value.

As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information available. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The use of unobservable inputs is intended to allow for fair value determinations in situations in which there is little, if any, market activity for the asset or liability at the measurement date. We are able to classify fair value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy such that “Level 1” measurements include unadjusted quoted market prices for identical assets or liabilities in an active market, “Level 2” measurements include quoted market prices for identical assets or liabilities in an active market which have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets, and “Level 3” measurements include those that are unobservable and of a highly subjective measure.

The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis as of February 28, 2015 and May 31, 2014. As required by ASC 820, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement (in thousands):

	February 28, 2015
	(unaudited)
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Liabilities:
Contingent consideration	$	—	$	—		$	1,261	$	1,261
Net investment hedge	$	—	$	(4,195	)	$	—	$	(4,195	)
	May 31, 2014
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Liabilities:
Contingent consideration	$	—	$	—		$	2,015	$	2,015
Net investment hedge	$	—	$	(1,229	)	$	—	$	(1,229	)

There were no transfers in and out of Level 1, Level 2 or Level 3 during the nine months ended February 28, 2015 and 2014.

The fair value of contingent consideration liabilities classified in the table above were estimated using a discounted cash flow technique with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820. The significant inputs in the Level 3 measurement not supported by market activity include a combination of actual cash flows and probability-weighted assessments of expected future cash flows related to the acquired businesses, appropriately discounted considering the uncertainties associated with the obligation, and as calculated in accordance with the terms of the acquisition agreement.

The following table represents the changes in the fair value of Level 3 contingent consideration (in thousands):

	Nine Months Ended February 28, 2015
	(unaudited)
Balance at May 31, 2014	$	2,015
Accretion of liability		122
Payment		(1,000	)
Acquisitions		124
Balance at February 28, 2015	$	1,261

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Entity Wide Disclosures - Additional Information (Detail)	9 Months Ended
	Feb. 28, 2015 Segment
Segment Reporting Information [Line Items]
Number of operating segments	3

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Geographic Breakdown of Revenues and Total Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014	May 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenues	$ 174,589	$ 163,236	$ 603,329	$ 538,040
Total Assets	483,551		483,551		484,941
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenues	134,805	120,916	450,462	382,322
Total Assets	369,808		369,808		353,624
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenues	22,454	22,267	94,572	93,621
Total Assets	61,068		61,068		68,515
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenues	9,365	10,448	33,275	31,079
Total Assets	32,127		32,127		38,870
Other Foreign Countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenues	7,965	9,605	25,020	31,018
Total Assets	$ 20,548		$ 20,548		$ 23,932

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Commitments and Contingencies - Additional Information (Detail) (USD $)	Feb. 28, 2015 Lawsuits
Commitments and Contingencies Disclosure [Line Items]
Number of lawsuits	95
Insurance coverage subject to deductible limit	$ 250,000

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OTHER COMPREHENSIVE INCOME (Tables)

9 Months Ended

Feb. 28, 2015

Summary of Changes in Other Comprehensive Income (Loss) Included Within Shareholders' Equity

A summary of changes in other comprehensive income (loss) included within shareholders’ equity is as follows (in thousands):

	Nine Months Ended February 28, 2015										Nine Months Ended February 28, 2014
	(unaudited)										(unaudited)
	Foreign Currency Translation Adjustments			Foreign Currency Hedge		Tax Provision		Total			Foreign Currency Translation Adjustments			Foreign Currency Hedge			Tax Provision			Total
Balance, beginning of period	$	(5,145	)	$	1,229	$	1,237	$	(2,679	)	$	(3,532	)	$	2,004		$	(261	)	$	(1,789	)
Other comprehensive income (loss) before tax		(14,791	)		2,966		1,956		(9,869	)		(2,925	)		(856	)		1,944			(1,837	)
Non-controlling interest		60			—		—		60			5			—			—			5
Balance, end of period	$	(19,876	)	$	4,195	$	3,193	$	(12,488	)	$	(6,452	)	$	1,148		$	1,683		$	(3,621	)

Related Tax Effects Allocated to Each Component of Other Comprehensive Income

The following table represents the related tax effects allocated to each component of other comprehensive income (in thousands):

	Nine Months Ended February 28, 2015									Nine Months Ended February 28, 2014
	(unaudited)									(unaudited)
	Gross Amount			Tax Effect			Net Amount			Gross Amount			Tax Effect		Net Amount
Foreign currency translation adjustments	$	(14,791	)	$	3,108		$	(11,683	)	$	(2,925	)	$	1,617	$	(1,308	)
Foreign currency hedge		2,966			(1,152	)		1,814			(856	)		327		(529	)
Total	$	(11,825	)	$	1,956		$	(9,869	)	$	(3,781	)	$	1,944	$	(1,837	)

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Amounts Recognized in Other Comprehensive Income, and Reclassified into Income (Detail) (Net Investment Hedge, USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Net Investment Hedge
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Other Comprehensive Income	$ 1,527	$ (94)	$ 2,966	$ (856)
Gain (Loss) Reclassified from Other Comprehensive Income to Earnings	$ 0	$ 0	$ 0	$ 0

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UNCONSOLIDATED SUBSIDIARIES

9 Months Ended

Feb. 28, 2015

UNCONSOLIDATED SUBSIDIARIES

15. UNCONSOLIDATED SUBSIDIARIES

Our earnings from unconsolidated affiliates consisted entirely of our joint venture (50% ownership) to perform non-destructive testing and inspection services in Alaska. At December 31, 2013 the joint venture was dissolved and the net assets were liquidated resulting in no material gain or loss. However, the operations of the joint venture have been continued by our IHT division. Revenues from the joint venture not reflected in our consolidated revenues were zero and $8.5 million for the nine months ended February 28, 2015 and 2014, respectively.

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RECEIVABLES (Tables)

9 Months Ended

Feb. 28, 2015

Summary of Accounts Receivable

A summary of accounts receivable as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015			May 31, 2014
	(unaudited)
Trade accounts receivable	$	160,920		$	165,484
Unbilled revenues		15,433			14,901
Allowance for doubtful accounts		(4,190	)		(4,784	)
Total	$	172,163		$	175,601

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Summary of Other Accrued Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	May 31, 2014
Schedule of Accrued Liabilities [Line Items]
Payroll and other compensation expenses	$ 21,539	$ 28,737
Insurance accruals	6,180	5,897
Property, sales and other non-income related taxes	1,583	2,381
Lease commitments	1,811	1,881
Deferred revenue	1,299	1,198
Other	7,185	8,297
Total	$ 39,597	$ 48,391

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Acquisitions - Additional Information (Detail) (USD $)	9 Months Ended		1 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Jul. 31, 2013	Aug. 31, 2014
Business Acquisition [Line Items]
Business acquisition total consideration, net of cash acquired	$ 2,949,000	$ 10,175,000
Global Ascent, Inc.
Business Acquisition [Line Items]
Business acquisition, contingent consideration			1,900,000
Business acquisition, purchase price			12,900,000
Business acquisition, net working capital			1,300,000
Business acquisition, allocated to goodwill and intangible assets			11,600,000
Business acquisition, expected deductible goodwill recognized for tax purposes			9,200,000
Business acquisition, Contingent consideration based upon achievement of operating earnings thresholds			4,000,000
Business acquisition, contingent consideration thresholds period			6 years
Mechanical Service | UNITED KINGDOM
Business Acquisition [Line Items]
Business acquisition total consideration, net of cash acquired				2,900,000
Business acquisitions, cash acquired				200,000
Business acquisition, contingent consideration				100,000
Business acquisition, allocated to fixed assets and net working capital				2,400,000
Business acquisition, intangible assets				$ 800,000

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Condensed Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Net income (loss)	$ 329	$ (971)	$ 24,942	$ 18,103
Foreign currency translation adjustment	(7,852)	(2,715)	(14,791)	(2,925)
Foreign currency hedge	1,527	(94)	2,966	(856)
Tax benefit attributable to other comprehensive income	1,179	1,111	1,956	1,944
Total comprehensive income (loss)	(4,817)	(2,669)	15,073	16,266
Less: Total comprehensive income attributable to non-controlling interest	2	42	181	173
Total comprehensive income (loss) available to Team shareholders	$ (4,819)	$ (2,711)	$ 14,892	$ 16,093

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INVENTORY

9 Months Ended

Feb. 28, 2015

INVENTORY

4. INVENTORY

A summary of inventory as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015		May 31, 2014
	(unaudited)
Raw materials	$	3,117	$	2,924
Work in progress		1,188		894
Finished goods		23,803		21,719
Total	$	28,108	$	25,537

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Total Options Outstanding, Range of Exercise Prices and Remaining Contractual Lives (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Feb. 28, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
No. of Options	610
Weighted Average Exercise Price	$ 22.39
Weighted Average Remaining Life	2 years
$8.20 to $9.62
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Prices, Lower limit	$ 9.23
Range of Prices, Upper limit	$ 9.62
No. of Options	17
Weighted Average Exercise Price	$ 9.23
Weighted Average Remaining Life	6 months
$9.63 to $12.82
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Prices, Lower limit	$ 9.63
Range of Prices, Upper limit	$ 12.82
No. of Options	61
Weighted Average Exercise Price	$ 11.74
Weighted Average Remaining Life	1 year 1 month 6 days
$12.83 to $16.03
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Prices, Lower limit	$ 12.83
Range of Prices, Upper limit	$ 16.03
No. of Options	208
Weighted Average Exercise Price	$ 14.78
Weighted Average Remaining Life	1 year 4 months 24 days
$16.04 to $32.05
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Prices, Lower limit	$ 16.04
Range of Prices, Upper limit	$ 32.05
No. of Options	324
Weighted Average Exercise Price	$ 29.92
Weighted Average Remaining Life	2 years 7 months 6 days

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Repurchase of Common Stock - Additional Information (Detail) (USD $)	3 Months Ended		12 Months Ended
	Feb. 28, 2015	Nov. 30, 2013	May 31, 2014	Oct. 01, 2013	Jun. 23, 2014
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount				$ 25,000,000
Stock repurchased and retired during period, shares	546,977	369,900
Stock repurchased and retired during period, value	21,100,000	13,300,000
Prior Periods
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired during period, shares			89,569
Stock repurchased and retired during period, value			1,300,000
Maximum
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount					50,000,000
Share Repurchase Plan
Equity, Class of Treasury Stock [Line Items]
Remaining stock available to repurchase	15,500,000
Share Repurchase Plan | Common Stock
Equity, Class of Treasury Stock [Line Items]
Common stock share purchase, reduction			100,000
Share Repurchase Plan | Additional Paid-in Capital
Equity, Class of Treasury Stock [Line Items]
Common stock share purchase, reduction			2,200,000
Share Repurchase Plan | Retained Earnings
Equity, Class of Treasury Stock [Line Items]
Common stock share purchase, reduction			$ 12,300,000

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INVENTORY (Tables)

9 Months Ended

Feb. 28, 2015

Summary of Inventory

A summary of inventory as of February 28, 2015 and May 31, 2014 is as follows (in thousands):

	February 28, 2015		May 31, 2014
	(unaudited)
Raw materials	$	3,117	$	2,924
Work in progress		1,188		894
Finished goods		23,803		21,719
Total	$	28,108	$	25,537

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Summary of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Feb. 28, 2015
Goodwill [Line Items]
Balance at beginning of year	$ 113,763
Acquisitions	0
Foreign currency adjustments	(5,578)
Balance at end of year	108,185
MS Segment
Goodwill [Line Items]
Balance at beginning of year	19,685
Acquisitions	0
Foreign currency adjustments	(2,120)
Balance at end of year	17,565
IHT Segment
Goodwill [Line Items]
Balance at beginning of year	63,249
Acquisitions	0
Foreign currency adjustments	(2,568)
Balance at end of year	60,681
Quest Integrity
Goodwill [Line Items]
Balance at beginning of year	30,829
Acquisitions	0
Foreign currency adjustments	(890)
Balance at end of year	$ 29,939

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ENTITY WIDE DISCLOSURES

9 Months Ended

Feb. 28, 2015

ENTITY WIDE DISCLOSURES

14. ENTITY WIDE DISCLOSURES

ASC 280, Segment Reporting, requires we disclose certain information about our operating segments where 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 three segments: IHT, MS and Quest Integrity. All three operating segments operate under a business segment manager who reports directly to Team’s Chief Executive Officer who operates as the chief operating decision maker. Segment data for our three operating segments are as follows (in thousands):

	Three Months Ended February 28,						Nine Months Ended February 28,
	2015			2014			2015			2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues:
IHT	$	95,350		$	85,149		$	335,024		$	290,409
MS		64,999			63,440			217,066			200,196
Quest Integrity		14,240			14,647			51,239			47,435
Total	$	174,589		$	163,236		$	603,329		$	538,040
	Three Months Ended February 28,						Nine Months Ended February 28,
	2015			2014			2015			2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Operating income:
IHT	$	7,536		$	3,783		$	41,822		$	31,666
MS		3,357			2,939			18,870			17,120
Quest Integrity		100			1,170			7,217			5,986
Corporate and shared support services		(8,067	)		(6,892	)		(24,484	)		(21,786	)
Total	$	2,926		$	1,000		$	43,425		$	32,986

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Capital expenditures:
IHT	$	2,029	$	2,187	$	5,893	$	5,602
MS		797		1,503		2,884		4,694
Quest Integrity		855		582		2,466		3,257
Corporate and shared support services		3,606		5,867		7,469		10,205
Total	$	7,287	$	10,139	$	18,712	$	23,758
	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Depreciation and amortization:
IHT	$	2,138	$	1,936	$	6,207	$	5,947
MS		1,850		1,801		5,598		5,391
Quest Integrity		1,429		1,343		4,254		4,033
Corporate and shared support services		271		205		793		605
Total	$	5,688	$	5,285	$	16,852	$	15,976

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

A geographic breakdown of our revenues and total assets are as follows (in thousands):

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues:
United States	$	134,805	$	120,916	$	450,462	$	382,322
Canada		22,454		22,267		94,572		93,621
Europe		9,365		10,448		33,275		31,079
Other foreign countries		7,965		9,605		25,020		31,018
Total	$	174,589	$	163,236	$	603,329	$	538,040

	February 28, 2015		May 31, 2014
	(unaudited)
Total assets:
United States	$	369,808	$	353,624
Canada		61,068		68,515
Europe		32,127		38,870
Other foreign countries		20,548		23,932
Total	$	483,551	$	484,941