Business Segments

12 Months Ended

Dec. 31, 2014

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 Europe, 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 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.  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 concrete products businesses produce precast concrete buildings and a variety of specialty precast concrete products.

The Company’s Tubular Products segment supplies pipe coatings for natural gas pipelines and utilities, blending, injection, and metering equipment for the oil and gas market, and produces threaded pipe products for industrial water well and irrigation markets.

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.

		2014
										Expenditures
		Net		Segment		Segment		Depreciation/		for Long-Lived
		Sales		Profit		Assets		Amortization		Assets
Rail Products	$	374,615	$	30,093	$	239,951	$	6,153	$	5,115
Construction Products		178,847		13,106		102,978		2,232		3,343
Tubular Products		53,730		5,350		130,289		3,208		6,988
Total	$	607,192	$	48,549	$	473,218	$	11,593	$	15,446

		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		51,497		1,054		2,460
Total	$	597,963	$	48,106	$	381,446	$	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

During 2014, 2013, and 2012, no single customer accounted for more than 10% of the Company’s consolidated net sales.  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:

2014 2013 2012

Income from Continuing Operations:
Total for reportable segments	$	48,549	$	48,106	$	29,787
Adjustment of inventory to LIFO		738		37		1,118
Unallocated interest income		530		659		452
Unallocated equity in income of nonconsolidated investments		1,282		1,316		837
Unallocated corporate amounts		(12,043)		(6,003)		(8,364)
Income from continuing operations, before income taxes	$	39,056	$	44,115	$	23,830

Assets:
Total for reportable segments	$	473,218	$	381,446	$	330,449
Unallocated corporate assets		30,192		41,235		84,737
LIFO		(8,289)		(9,027)		(9,064)
Total assets	$	495,121	$	413,654	$	406,122

Depreciation/Amortization:
Total for reportable segments	$	11,593	$	9,317	$	12,454
Other		984		685		519
Total	$	12,577	$	10,002	$	12,973

Expenditures for Long-Lived Assets:
Total for reportable segments	$	15,446	$	7,648	$	6,004
Expenditures funded through financing agreements		1,981		-		-
Other expenditures		1,610		2,026		1,156
Total	$	19,037	$	9,674	$	7,160

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

		2014		2013		2012
United States	$	498,025	$	495,710	$	485,111
Canada		39,375		37,290		40,892
United Kingdom		22,625		16,548		18,698
Other		47,167		48,415		43,840
	$	607,192	$	597,963	$	588,541

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

		2014		2013		2012
United States	$	66,905	$	40,717	$	31,961
Canada		7,440		8,833		9,773
Europe		457		559		599
	$	74,802	$	50,109	$	42,333

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

		2014		2013		2012
Rail distribution products	$	139,529	$	144,911	$	155,832
Piling products		111,182		140,302		114,070
Rail Technologies products		109,053		88,670		92,826
CXT concrete tie products		52,562		44,108		58,182
Allegheny Rail Products		45,008		36,666		33,046
Concrete products		36,396		32,969		30,195
Other products		113,462		110,337		104,390
	$	607,192	$	597,963	$	588,541