Business Segments

9 Months Ended

Sep. 30, 2016

Business Segments [Abstract]

BUSINESS SEGMENTS

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 its respective contribution to the Company’s consolidated results based upon segment profit.

The following table illustrates revenues and profits (losses) from operations of the Company by segment for the periods indicated:

		Three Months Ended				Nine Months Ended
		September 30, 2016				September 30, 2016
		Net		Segment		Net		Segment
		Sales		Profit (loss)		Sales		Profit (loss)
Rail Products and Services	$	56,891	$	(2,047)	$	188,686	$	(26,474)
Construction Products		34,870		1,356		107,098		5,748
Tubular and Energy Services		22,883		(6,966)		81,164		(111,876)
Total	$	114,644	$	(7,657)	$	376,948	$	(132,602)

		Three Months Ended				Nine Months Ended
		September 30, 2015				September 30, 2015
		Net		Segment		Net		Segment
		Sales		Profit (loss)		Sales		Profit (loss)
Rail Products and Services	$	87,972	$	6,984	$	252,530	$	19,469
Construction Products		54,093		4,456		137,899		10,842
Tubular and Energy Services		33,994		(79,873)		94,956		(77,557)
Total	$	176,059	$	(68,433)	$	485,385	$	(47,246)

Segment profits (losses) from operations, as shown above, include internal cost of capital charges for assets used in the segment at a rate of generally 1% per month. There has been no change in the measurement of segment profit from operations since December 31, 2015. The internal cost of capital charges are eliminated during the consolidation process.

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

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
Loss for reportable segments	$	(7,657)	$	(68,433)	$	(132,602)	$	(47,246)
Interest expense		(1,520)		(1,265)		(4,342)		(3,166)
Interest income		50		66		157		160
Other income		1,085		537		263		1,245
LIFO income		917		181		1,442		581
Equity in loss of nonconsolidated investments		(263)		(299)		(946)		(312)
Corporate expense, cost of capital elimination, and other unallocated charges		(1,973)		(989)		(6,907)		(6,974)
Loss before income taxes	$	(9,361)	$	(70,202)	$	(142,935)	$	(55,712)

The following table illustrates assets of the Company by segment:

		September 30,		December 31,
		2016		2015
Rail Products and Services	$	155,657	$	241,222
Construction Products		83,061		86,335
Tubular and Energy Services		103,976		216,715
Unallocated corporate assets		68,586		22,388
Total	$	411,280	$	566,660