Business Segments

12 Months Ended

Dec. 31, 2015

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 that 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 segment profit contribution to the Company’s consolidated results.

As a result of recently completed acquisitions, during the first quarter of 2015, the Company renamed the Rail Products and Tubular Products business segments to be Rail Products and Services and Tubular and Energy Services, respectively. The name changes principally reflect the additional businesses conducted by those segments as a result of acquisitions that have enhanced our product and service offerings within the rail and energy markets. Excluding the addition of current year acquisitions, there were no changes to the divisions that have been aggregated within the segments nor were there changes to the historical reportable segment results.

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 and Services segment provides a full line of new and used rail, trackwork, and accessories to railroads, mines, and other customers in the rail industry.  The Rail segment also designs and produces insulated rail joints, power rail, track fasteners, concrete railroad ties, coverboards, and special accessories for mass transit and other rail systems.  In addition, the Rail Products and Services 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 and Energy Services segment provides pipe coatings for natural gas pipelines and utilities, upstream test and inspection services, precision measurement systems for the oil and gas market, and produces threaded pipe products for the oil and gas markets as well as industrial water well and irrigation markets.

The following table illustrates net sales, profit (loss), assets, depreciation/amortization, and expenditures for long-lived assets of the Company by segment for the years ended or at December 31, 2015, 2014, and 2013.  Segment profit is the earnings from 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 excluding recently acquired businesses.  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.

		2015
										Expenditures
		Net		Segment		Segment		Depreciation/		for Long-Lived
		Sales		Profit (Loss)		Assets		Amortization		Assets
Rail Products and Services	$	328,982	$	27,037	$	241,222	$	8,098	$	4,273
Construction Products		176,394		12,958		86,335		2,720		1,260
Tubular and Energy Services		119,147		(81,344)	*	216,715		14,857		4,303
Total	$	624,523	$	(41,349)	$	544,272	$	25,675	$	9,836

		2014
										Expenditures
		Net		Segment		Segment		Depreciation/		for Long-Lived
		Sales		Profit		Assets		Amortization		Assets
Rail Products and Services	$	374,615	$	30,093	$	239,951	$	6,153	$	5,115
Construction Products		178,847		13,106		102,978		2,232		3,343
Tubular and Energy Services		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 and Services	$	363,667	$	28,692	$	252,049	$	6,505	$	3,383
Construction Products		191,751		10,206		77,900		1,758		1,805
Tubular and Energy Services		42,545		9,208		51,497		1,054		2,460
Total	$	597,963	$	48,106	$	381,446	$	9,317	$	7,648

* -  Segment loss includes impairment of goodwill as further described in Note 4.

During 2015, 2014, and 2013, 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 to the Company’s consolidated totals are illustrated as follows for the years ended and as of December 31:

2015 2014 2013

(Loss) income from Operations:
Total for reportable segments	$	(41,349)	$	48,549	$	48,106
Adjustment of inventory to LIFO		2,468		738		37
Unallocated interest income		206		530		659
Unallocated equity in (loss) income of nonconsolidated investments		(413)		1,282		1,316
Unallocated corporate amounts		(11,489)		(12,039)		(5,980)
(Loss) income from operations, before income taxes	$	(50,577)	$	39,060	$	44,138

Assets:
Total for reportable segments	$	544,272	$	473,218	$	381,446
Unallocated corporate assets		28,209		26,788		40,774
LIFO		(5,821)		(8,289)		(9,027)
Total assets	$	566,660	$	491,717	$	413,193

Depreciation/Amortization:
Total for reportable segments	$	25,675	$	11,593	$	9,317
Other		999		984		685
Total	$	26,674	$	12,577	$	10,002

Expenditures for Long-Lived Assets:
Total for reportable segments	$	9,836	$	15,446	$	7,648
Expenditures funded through financing agreements		288		1,981		-
Other expenditures		5,077		1,610		2,026
Total	$	15,201	$	19,037	$	9,674

The following table summarizes the Company’s sales by major geographic region in which the Company has operations for the years ended December 31:

		2015		2014		2013
United States	$	522,404	$	498,025	$	495,710
Canada		40,545		39,375		37,290
United Kingdom		26,817		22,625		16,548
Other		34,757		47,167		48,415
	$	624,523	$	607,192	$	597,963

The following table summarizes the Company’s long-lived assets by geographic region at December 31:

		2015		2014		2013
United States	$	118,053	$	66,905	$	40,717
Canada		6,186		7,440		8,833
Other		2,506		457		559
	$	126,745	$	74,802	$	50,109

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

		2015		2014		2013
Rail distribution products	$	126,277	$	139,529	$	144,911
Rail Technologies products		98,237		109,053		88,670
Piling products		94,853		111,182		140,302
Concrete products		52,044		36,396		32,969
Test and inspection services		35,906		-		-
CXT concrete tie products		35,740		52,562		44,108
Allegheny Rail Products		35,155		45,008		36,666
Other products		146,311		113,462		110,337
	$	624,523	$	607,192	$	597,963