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 Companyās chief operating decision maker in deciding how to allocate resources. Each segment is evaluated based upon their segment profit contribution to the Companyās 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 Companyās 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 Companyās Construction Products segment sells and rents steel sheet piling, H-bearing pile, and other piling products for foundation and earth retention requirements. The Companyās 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 Companyās 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 (āFIFOā) basis at the segment level compared to a Last-In, First-Out (āLIFOā) 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 Companyās 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 Companyās 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 Companyās 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 Companyās 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 Companyās 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 |