Business Segments

12 Months Ended

Dec. 31, 2016

Business Segments [Abstract]

Business Segments

Note 2.

Business Segments

The Company is a leading manufacturer and distributor of products and services for transportation and energy infrastructure. 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 its segment profit contribution to the Company’s consolidated 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 Bridge 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, and 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, 2016, 2015, and 2014.  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.

		2016
										Expenditures
		Net		Segment		Segment		Depreciation/		for Long-Lived
		Sales		Profit (Loss) *		Assets		Amortization		Assets
Rail Products and Services	$	239,127	$	(26,228)	$	174,049	$	7,276	$	856
Construction Products		145,602		8,189		81,074		2,256		687
Tubular and Energy Services		98,785		(116,126)		100,006		12,644		3,810
Total	$	483,514	$	(134,165)	$	355,129	$	22,176	$	5,353

		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

*	-  Segment loss includes impairment of goodwill, definite-lived intangible assets and property, plant and equipment as further described in Note 4 Goodwill and Other Intangible Assets and Note 7 Property, Plant and Equipment.
**	-  Segment loss includes impairment of goodwill as further described in Note 4 Goodwill and Other Intangible Assets.

During 2016, 2015, and 2014, 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 as follows for the years ended and as of December 31:

2016 2015 2014

(Loss) income from Operations:
Total for reportable segments	$	(134,165)	$	(41,349)	$	48,549
Adjustment of inventory to LIFO		2,643		2,468		738
Unallocated interest income		87		206		530
Unallocated equity in (loss) income of nonconsolidated investments		(1,290)		(413)		1,282
Unallocated corporate amounts		(14,444)		(11,489)		(12,039)
(Loss) income from operations, before income taxes	$	(147,169)	$	(50,577)	$	39,060

Assets:
Total for reportable segments	$	355,129	$	544,272	$	473,218
Unallocated corporate assets		41,072		28,209		26,788
LIFO		(3,178)		(5,821)		(8,289)
Total assets	$	393,023	$	566,660	$	491,717

Depreciation/Amortization:
Total for reportable segments	$	22,176	$	25,675	$	11,593
Other		1,316		999		984
Total	$	23,492	$	26,674	$	12,577

Expenditures for Long-Lived Assets:
Total for reportable segments	$	5,353	$	9,836	$	15,446
Expenditures funded through financing agreements		-		288		1,981
Other expenditures		2,311		5,077		1,610
Total	$	7,664	$	15,201	$	19,037

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

		2016		2015		2014
United States	$	390,930	$	522,404	$	498,025
United Kingdom		37,188		26,817		22,625
Canada		30,644		40,545		39,375
Other		24,752		34,757		47,167
	$	483,514	$	624,523	$	607,192

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

		2016		2015		2014
United States	$	96,650	$	118,053	$	66,905
Canada		5,445		6,186		7,440
Other		1,878		2,506		457
	$	103,973	$	126,745	$	74,802

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

		2016		2015		2014
Rail Technologies products	$	90,469	$	98,237	$	109,053
Rail distribution products		83,236		126,277		139,529
Piling products		70,535		94,853		111,182
Concrete products		54,514		52,044		36,396
Precision measurement systems		42,830		36,048		-
Allegheny Rail Products		24,102		35,155		45,008
Upstream test and inspection services		20,765		35,906		-
CXT concrete tie products		16,288		35,740		52,562
Other products		80,775		110,263		113,462
	$	483,514	$	624,523	$	607,192