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Business Segment Information | 9 Months Ended
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Sep. 30, 2015
Segment Reporting [Abstract] |
Business Segment Information | Business Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by a company's chief operating decision maker ("CODM"), or a decision making group, in deciding how to allocate resources and in assessing financial performance. As of September 30, 2015, the Company's CODM was the Company's CEO. The Company's operating and reportable segments are organized by products and services provided. Segments have been reorganized from prior periods due to changes within the Company's management structure and the manner in which the Company is operating the business. All prior periods have been conformed to the current year presentation. The Company had four reportable segments during the periods presented: (1) Refined Coal ("RC"); (2) Emissions Control - Engineering and Technology Services ("EC - ETS"); (3) Emissions Control - Manufacturing ("EC - Manufacturing"); and (4) Research and Development ("R&D"). The business segment measurements provided to and evaluated by the CODM are computed in accordance with the principles listed below:
• | The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies except as described below.
• | Segment revenue includes the Company's equity method earnings and losses from the Company's equity method investments. Segment revenue also includes the Company's royalty earnings from CCS.
• | Segment operating income (loss) includes the Company's equity method earnings and losses from the Company's equity method investments and royalty earnings from CCS (including depreciation and amortization expense). However, segment operating income (loss) excludes Payroll and benefits, Rent and occupancy, Legal and professional fees, and General and administrative ("Corporate general and administrative expenses") unless otherwise specifically included as the Company does not allocate those amounts between segments.
• | Segment revenue includes Research and Development reimbursements.
• | All items not included in operating income are excluded from the segments reporting.
As of September 30, 2015 and December 31, 2014 all material assets are located in the U.S. and all significant customers are either U.S. companies or the U.S. Government. The following table presents the Company's operating segment results for the three and nine months ended September 30, 2015 and 2014:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014
Revenues: |  |  |  |  |  |  |  |
Refined Coal: |  |  |  |  |  |  |  |
Earnings in equity method investments |  | $ | (41 | ) |  | $ | 5,603 |  |  | $ | 5,133 |  |  | $ | 22,019 |
Consulting services |  | — |  |  | 160 |  |  | 55 |  |  | 596 |
Royalties |  | 3,273 |  |  | 2,275 |  |  | 7,767 |  |  | 4,255 |
|  | 3,232 |  |  | 8,038 |  |  | 12,955 |  |  | 26,870 |
Emissions Control - Engineering Technology and Services: |  |  |  |  |  |  |  |
Equipment sales |  | 8,787 |  |  | 7,139 |  |  | 44,046 |  |  | 8,893 |
Consulting services |  | 664 |  |  | 850 |  |  | 1,255 |  |  | 1,856 |
Chemical and other |  | 132 |  |  | 77 |  |  | 749 |  |  | 214 |
|  | 9,583 |  |  | 8,066 |  |  | 46,050 |  |  | 10,963 |
Emissions Control - Manufacturing: |  |  |  |  |  |  |  |
Equipment sales |  | 3,302 |  |  | 356 |  |  | 3,394 |  |  | 601 |
Consulting services |  | — |  |  | 490 |  |  | 38 |  |  | 1,070 |
Chemical and other |  | — |  |  | — |  |  | — |  |  | — |
|  | 3,302 |  |  | 846 |  |  | 3,432 |  |  | 1,671 |
Research and Development: |  | 859 |  |  | 612 |  |  | 1,271 |  |  | 1,550 |
|  | 859 |  |  | 612 |  |  | 1,271 |  |  | 1,550 |
Total segment reporting revenues |  | $ | 16,976 |  |  | $ | 17,562 |  |  | $ | 63,708 |  |  | $ | 41,054 |
Adjustments to reconcile to reported revenues: |  |  |  |  |  |  |  |
Refined Coal: |  |  |  |  |  |  |  |
Earnings in equity method investments |  | $ | 41 |  |  | $ | (5,603 | ) |  | $ | (5,133 | ) |  | $ | (22,019 | )
Royalties |  | (3,273 | ) |  | (2,275 | ) |  | (7,767 | ) |  | (4,255 | )
|  | (3,232 | ) |  | (7,878 | ) |  | (12,900 | ) |  | (26,274 | )
Research and Development: |  | (859 | ) |  | (612 | ) |  | (1,271 | ) |  | (1,550 | )
Total reported revenues |  | $ | 12,885 |  |  | $ | 9,072 |  |  | $ | 49,537 |  |  | $ | 13,230 |
Segment reporting operating income (loss) |  |  |  |  |  |  |  |
Refined Coal |  | $ | 1,458 |  |  | $ | 6,491 |  |  | $ | 7,294 |  |  | $ | 22,406 |
Emissions Control - Engineering Technology Services |  | 1,394 |  |  | (72 | ) |  | 5,839 |  |  | (1,997 | )
Emissions Control - Manufacturing |  | (2,402 | ) |  | (1,539 | ) |  | (7,772 | ) |  | (3,535 | )
Research and Development |  | (2,416 | ) |  | (382 | ) |  | (6,400 | ) |  | (1,181 | )
Total segment operating income (loss) |  | $ | (1,966 | ) |  | $ | 4,498 |  |  | $ | (1,039 | ) |  | $ | 15,693 |
A reconciliation of reportable segment amounts to the Company's consolidated balances is as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014
Segment income (loss) |  |  |  |  |  |  |  |
Total reported segment income (loss) |  | $ | (1,966 | ) |  | $ | 4,498 |  |  | $ | (1,039 | ) |  | $ | 15,693 |
Adjustments to reconcile to net loss attributable to Advanced Emissions Solutions, Inc. |  |  |  |  |  |  |  |
Corporate payroll and benefits |  | (2,341 | ) |  | (4,014 | ) |  | (11,852 | ) |  | (9,581 | )
Corporate rent and occupancy |  | (202 | ) |  | (185 | ) |  | (503 | ) |  | (512 | )
Corporate legal and professional fees |  | (3,150 | ) |  | (2,903 | ) |  | (10,514 | ) |  | (5,611 | )
Corporate general and administrative |  | (740 | ) |  | (899 | ) |  | (2,731 | ) |  | (2,926 | )
Depreciation and amortization |  | (143 | ) |  | (88 | ) |  | (448 | ) |  | (259 | )
Interest income |  | 2 |  |  | 14 |  |  | 20 |  |  | 61 |
Other expense |  | (70 | ) |  | (9 | ) |  | (15 | ) |  | — |
Income tax expense |  | (44 | ) |  | (113 | ) |  | (151 | ) |  | (155 | )
Net loss |  | $ | (8,654 | ) |  | $ | (3,699 | ) |  | $ | (27,233 | ) |  | $ | (3,290 | )
Unallocated general and administrative expenses include certain costs that benefit the business as a whole but are not directly related to one of our segments. Such costs include but are not limited to accounting and human resources staff, information systems costs, legal fees, facility costs, audit fees and corporate governance expenses. Segment assets were as follows as of the dates presented:
|  | As of
(in thousands) |  | September 30, 2015 |  | December 31, 2014
Refined Coal (1) |  | $ | 21,062 |  |  | $ | 21,322 |
Emissions Control - Engineering Technology and Services: |  | 20,233 |  |  | 34,175 |
Emissions Control - Manufacturing |  | 8,291 |  |  | 11,285 |
Research and Development |  | 5,225 |  |  | 6,431 |
All Other and Corporate |  | 10,494 |  |  | 20,486 |
Consolidated |  | $ | 65,305 |  |  | $ | 93,699 |
(1) The asset carrying value of the Company's equity investment in CCS was zero as of September 30, 2015 and December 31, 2014, respectively. During the fourth quarter of 2015 the Company realigned its operating segments into two reportable segments: (1) Refined Coal ("RC"); and (2) Emissions Control ("EC"). Beginning with the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, the Company will retroactively adjust all segment related disclosures.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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