Business Segments

12 Months Ended

Dec. 31, 2013

Business Segments [Abstract]

BUSINESS SEGMENTS

Note 2.

Business Segments

The Company is a leading manufacturer, fabricator, and distributor of products and services for rail, construction, energy and utility markets. The Company is organized and evaluated by product group, which is the basis for identifying reportable segments. Each segment represents a revenue-producing component of the Company for which separate financial information is produced internally and is subject to evaluation by the Company’s chief operating decision maker in deciding how to allocate resources. Each segment is evaluated based upon their contribution to the Company’s consolidated results based upon segment profit.

The Company markets its products directly in all major industrial areas of the United States, Canada and the United Kingdom, primarily through an internal sales force.

The Company’s Rail Products segment provides a full line of new and used rail, trackwork and accessories to railroads, mines and industry.  The Rail segment also designs and produces concrete railroad ties, insulated rail joints, power rail, track fasteners, coverboards and special accessories for mass transit and other rail systems.  In addition, the Rail Products segment also engineers, manufactures and assembles friction management products and railway wayside data collection and management systems. 

The Company’s Construction Products segment sells and rents steel sheet piling, H-bearing pile, and other piling products for foundation and earth retention requirements.  In addition, the Company’s Fabricated Products division sells bridge decking, bridge railing, structural steel fabrications, expansion joints, bridge forms and other products for highway construction and repair.  The Buildings division produces precast concrete buildings.

The Company’s Tubular Products segment supplies pipe coatings for natural gas pipelines and utilities.  Additionally, this segment produces threaded pipe products for industrial water well and irrigation markets. L.B. Foster Ball Winch, Inc., which was acquired on November 7, 2013, will enhance our pipe coating capabilities and expand our business into the field service coating space.

The following table illustrates net sales, profits, assets, depreciation/amortization and expenditures for long-lived assets of the Company by segment from continuing operations.  Segment profit is the earnings from continuing operations before income taxes and includes internal cost of capital charges for net assets used in the segment at a rate of generally 1% per month.  The internal cost of capital charges are eliminated during the consolidation process. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies except that the Company accounts for inventory on a First-In, First-Out (FIFO) basis at the segment level compared to a Last-In, First-Out (LIFO) basis at the consolidated level.

		2013
										Expenditures
		Net		Segment		Segment		Depreciation/		for Long-Lived
		Sales		Profit		Assets		Amortization		Assets
Rail Products	$	363,667	$	28,692	$	252,049	$	6,505	$	3,383
Construction Products		191,751		10,206		77,900		1,758		1,805
Tubular Products		42,545		9,208		37,107		1,054		2,460
Total	$	597,963	$	48,106	$	367,056	$	9,317	$	7,648

		2012
										Expenditures
		Net		Segment		Segment		Depreciation/		for Long-Lived
		Sales		Profit		Assets		Amortization		Assets
Rail Products	$	370,322	$	9,074	$	243,072	$	9,736	$	4,180
Construction Products		169,253		7,859		73,804		2,119		474
Tubular Products		48,966		12,854		13,573		599		1,350
Total	$	588,541	$	29,787	$	330,449	$	12,454	$	6,004

		2011
										Expenditures
		Net		Segment		Segment		Depreciation/		for Long-Lived
		Sales		Profit		Assets		Amortization		Assets
Rail Products	$	315,133	$	18,724	$	219,917	$	8,908	$	5,894
Construction Products		227,734		16,323		88,615		2,180		1,049
Tubular Products		32,470		6,810		11,758		453		3,995
Total	$	575,337	$	41,857	$	320,290	$	11,541	$	10,938

During 2013 and 2012, no single customer accounted for more than 10% of the Company’s consolidated net sales.  In 2011, one customer accounted for approximately 10% of consolidated net sales.  Sales to this customer were recorded primarily in the Rail Products segment and to a lesser degree the Construction Products segment. Net sales to this customer totaling $58,715 were recorded during 2011.  Sales between segments are immaterial.

Reconciliations of reportable segment net sales, profits, assets, depreciation/amortization, and expenditures for long-lived assets from continuing operations to the Company’s consolidated totals from continuing operations are illustrated as follows:

2013 2012 2011

Income from Continuing Operations:
Total for reportable segments	$	48,106	$	29,787	$	41,857
Adjustment of inventory to LIFO		37		1,118		(2,183)
Unallocated interest income		659		452		321
Unallocated equity in income of nonconsolidated investments		1,316		837		707
Unallocated corporate amounts		(6,003)		(8,364)		(8,050)
Income from continuing operations, before income taxes	$	44,115	$	23,830	$	32,652

Assets:
Total for reportable segments	$	367,056	$	330,449	$	320,290
Unallocated corporate assets		55,625		84,737		69,787
LIFO		(9,027)		(9,064)		(10,183)
Total assets	$	413,654	$	406,122	$	379,894

		2013		2012		2011
Depreciation/Amortization:
Total for reportable segments	$	9,317	$	12,454	$	11,541
Other		685		519		466
Total	$	10,002	$	12,973	$	12,007

Expenditures for Long-Lived Assets:
Total for reportable segments	$	7,648	$	6,004	$	10,938
Other expenditures		2,026		1,156		795
Total	$	9,674	$	7,160	$	11,733

The following table summarizes the Company’s sales from continuing operations by major geographic region in which the Company has operations:

		2013		2012		2011
United States	$	495,710	$	485,111	$	483,889
Canada		37,290		40,892		41,252
United Kingdom		16,548		18,698		14,728
Other		48,415		43,840		35,468
	$	597,963	$	588,541	$	575,337

The following table summarizes the Company’s long-lived assets from continuing operations by geographic region:

		2013		2012		2011
United States	$	40,717	$	31,961	$	35,918
Canada		8,833		9,773		9,374
United Kingdom		559		599		545
	$	50,109	$	42,333	$	45,837

The following table summarizes the Company’s sales by major product line from continuing operations:

		2013		2012		2011
Rail distribution products	$	144,911	$	155,832	$	115,777
Piling products		140,302		114,070		162,641
Rail Technologies products		88,670		92,826		97,775
CXT concrete tie products		44,108		58,182		48,968
Transit products		41,947		22,215		17,256
CXT concrete building products		32,969		30,195		35,557
Other products		105,056		115,221		97,363
	$	597,963	$	588,541	$	575,337