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Business Segment Information
 12 Months Ended
Dec. 31, 2016
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 December 31, 2016, the Company's CODM was the Company's CEO. The Company's operating and reportable segments are organized by products and services provided.
As of December 31, 2016, the Company has two reportable segments: (1) Refined Coal ("RC"); and (2) Emissions Control ("EC").
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 Tinuum Group and income related to sales-type leases.
•
Segment operating income (loss) includes the Company's equity method earnings and losses from the Company's equity method investments, royalty earnings from Tinuum Group (including depreciation and amortization expense) and gains related to sales of equity method investments. 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.
•
All items not included in operating income, except as noted below, are excluded from the RC and EC segments.
As of December 31, 2016 and December 31, 2015, substantially all of the Company's 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 years ended December 31, 2016, 2015 and 2014:

 
 
Years Ended December 31,
(in thousands)
 
2016
 
2015
 
2014
Revenues:
 
 
 
 
 
 
Refined Coal:
 
 
 
 
 
 
Earnings in equity method investments
 
$
45,584

 
$
8,921

 
$
42,712

Consulting services
 
—

 
55

 
665

Royalties, related party
 
6,125

 
10,642

 
6,410

 
 
51,709

 
19,618

 
49,787

Emissions Control:
 
 
 
 
 
 
Equipment sales
 
46,949

 
60,099

 
12,044

Chemicals
 
3,025

 
888

 
391

Consulting services
 
648

 
1,697

 
3,823

 
 
50,622

 
62,684

 
16,258

Total segment reporting revenues
 
$
102,331

 
$
82,302

 
$
66,045

 
 
 
 
 
 
 
Adjustments to reconcile to reported revenues:
 
 
 
 
 
 
Refined Coal:
 
 
 
 
 
 
Earnings in equity method investments
 
$
(45,584
)
 
$
(8,921
)
 
$
(42,712
)
Royalties, related party
 
(6,125
)
 
(10,642
)
 
(6,410
)
 
 
(51,709
)
 
(19,563
)
 
(49,122
)
 
 
 
 
 
 
 
Total reported revenues
 
$
50,622

 
$
62,739

 
$
16,923

Segment reporting operating income (loss)
 
 
 
 
 
 
Refined Coal (1)
 
$
51,264

 
$
12,131

 
$
42,094

Emissions Control (2)
 
7,334

 
(7,583
)
 
(13,348
)
Total segment operating income
 
$
58,598

 
$
4,548

 
$
28,746



(1) Included within the RC segment operating income for the year ended December 31, 2016 is a $2.1 million gain on the sale of RCM6 and for the years ended December 31, 2016 and 2015, 453A interest expense of $2.5 million and $4.6 million, respectively, and interest expense related to the RCM6 note payable of $0.3 million and $2.5 million, respectively.
(2) Included within the EC segment operating income for the year ended December 31, 2016 is a $0.9 million gain related to a termination of a sales-type lease.
A reconciliation of reportable segment income to the Company's consolidated net income is as follows: 
 
 
Years Ended December 31,
(in thousands)
 
2016
 
2015
 
2014
Segment income
 
 
 
 
 
 
Total reported segment operating income
 
$
58,598

 
$
4,548

 
$
28,746

Adjustments to reconcile to net income (loss) attributable to the Company
 
 
 
 
 
 
Corporate payroll and benefits
 
(9,415
)
 
(14,842
)
 
(12,621
)
Corporate rent and occupancy
 
(1,187
)
 
(707
)
 
(694
)
Corporate legal and professional fees
 
(8,230
)
 
(15,199
)
 
(9,514
)
Corporate general and administrative
 
(3,811
)
 
(3,640
)
 
(3,980
)
Corporate depreciation and amortization
 
(608
)
 
(578
)
 
(354
)
Corporate interest (expense) income, net
 
(2,334
)
 
24

 
74

Other income (expense), net
 
3,727

 
273

 
26

Income tax benefit (expense)
 
60,938

 
(20
)
 
(296
)
Net income (loss)
 
$
97,678

 
$
(30,141
)
 
$
1,387


Corporate 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 are as follows as of the dates presented:
 
 
As of December 31,
(in thousands)
 
2016
 
2015
Assets:
 
 
 
 
Refined Coal
 
$
6,310

 
$
19,507

Emissions Control
 
24,551

 
31,467

All Other and Corporate
 
76,435

 
9,801

Consolidated
 
$
107,296

 
$
60,775