Business Segments

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Business Segments

Business Segments The Company provides products and services for the rail industry and solutions to support critical infrastructure projects. The Company’s innovative engineering and product development solutions address the safety, reliability, and performance of its customers’ challenging requirements. The Company maintains locations in North America, South America, Europe, and Asia. The Company’s segments represent components of the Company (a) that engage in activities from which revenue is generated and expenses are incurred, (b) whose operating results are regularly reviewed by the CODM, who uses such information to make decisions about resources to be allocated to the segments, and (c) for which discrete financial information is available. Operating segments are evaluated on their segment profit contribution to the Company’s consolidated results. Other income and expenses, interest, income taxes, and certain other items are managed on a consolidated basis. The Company’s segment accounting policies are described in Note 2 Business Segments of the Notes to the Company’s Consolidated Financial Statements contained in its Annual Report on Form 10-K for the year-ended December 31, 2020.

The following table illustrates the Company’s revenues and profit from operations by segment for the periods indicated:

	Three Months Ended September 30, 2021				Three Months Ended September 30, 2020
	Net Sales		Segment Profit		Net Sales		Segment Profit
Rail Technologies and Services	$	73,942	$	3,555	$	63,988	$	3,742
Infrastructure Solutions	56,111		3,484		54,377		2,375
Total	$	130,053	$	7,039	$	118,365	$	6,117

	Nine Months Ended September 30, 2021				Nine Months Ended September 30, 2020
	Net Sales		Segment Profit		Net Sales		Segment Profit
Rail Technologies and Services	$	228,956	$	12,050	$	209,131	$	10,729
Infrastructure Solutions	171,699		5,165		172,704		8,836
Total	$	400,655	$	17,215	$	381,835	$	19,565

Segment profit from operations, as shown above, includes allocated corporate operating expenses. Operating expenses related to corporate headquarter functions that directly support the segment activity are allocated based on segment headcount, revenue contribution, or activity of the business units within the segments, based on the corporate activity type provided to the segment. The expense allocation excludes certain corporate costs that are separately managed from the segments.

The following table provides a reconciliation of segment net profit from continuing operations to the Company’s consolidated continuing operations total for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Profit for reportable segments	$	7,039	$	6,117	$	17,215	$	19,565
Interest expense - net	(722)		(940)		(2,454)		(2,841)
Other (expense) income - net	(116)		(243)		74		2,178
Unallocated corporate expenses and other unallocated charges	(3,285)		(2,098)		(9,517)		(7,057)
Income before income taxes from continuing operations	$	2,916	$	2,836	$	5,318	$	11,845

The following table illustrates assets of the Company by segment for the periods presented:

	September 30, 2021		December 31, 2020
Rail Technologies and Services	$	169,242	$	161,485
Infrastructure Solutions	119,184		137,519
Unallocated corporate assets	71,377		71,391
Total	$	359,803	$	370,395