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Business Segment Information
 9 Months Ended
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.