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 March 31, 2020, the Company's CODM was the Company's CEO. The Company's operating and reportable segments are identified by products and services provided.

As of March 31, 2020, the Company has two reportable segments: (1) Refined Coal ("RC"); and (2) Power Generation and Industrials ("PGI").

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 in the 2019 Form 10-K.


•	Segment revenues include equity method earnings and losses from the Company's equity method investments.


•	Segment operating income (loss) includes segment revenues and allocation of certain "Corporate general and administrative expenses," which include Payroll and benefits, Legal and professional fees and General and administrative.


•	RC segment operating income includes interest expense directly attributable to the RC segment.

As of March 31, 2020 and December 31, 2019, substantially all of the Company's material assets are located in the U.S. and substantially all of significant customers are U.S. companies. The following table presents the Company's operating segment results for the three months ended March 31, 2020 and 2019:



	Three Months Ended March 31,
(in thousands)	2020			2019
Revenues:
Refined Coal:
Earnings in equity method investments	$	8,273		$	21,690
License royalties, related party	3,046			4,220
	11,319			25,910
Power Generation and Industrials:
Consumables	8,475			14,553
	8,475			14,553
Total segment reporting revenues	19,794			40,463

Adjustments to reconcile to reported revenues:
Earnings in equity method investments	(8,273		)	(21,690		)
Corporate and other	742			556
Total reported revenues	$	12,263		$	19,329

Segment operating income (loss):
Refined Coal (1)	$	10,860		$	25,233
Power Generation and Industrials (2)	(6,577		)	(3,462		)
Total segment operating income	$	4,283		$	21,771

(1) Included in RC segment operating income for the three months ended March 31, 2020 and 2019 is 453A interest expense of $0.1 million and $0.3 million, respectively.

(2) Included in PGI segment operating loss for the three months ended March 31, 2020 and 2019 was $2.0 million and $2.0 million, respectively, of depreciation, amortization, and depletion expense on mine and plant long-lived assets. Included in PGI segment operating loss for the three months ended March 31, 2019 was $3.4 million of costs recognized as a result of the step-up in inventory fair value recorded from the Carbon Solutions Acquisition.

A reconciliation of reportable segment operating income to the Company's consolidated income before income tax expense is as follows:



	Three Months Ended March 31,
(in thousands)	2020			2019
Total reported segment operating income	$	4,283		$	21,771
Other operating loss	(793		)	(398		)
	3,490			21,373
Adjustments to reconcile to (loss) income before income tax expense attributable to the Company:
Corporate payroll and benefits	(709		)	(432		)
Corporate legal and professional fees	(1,749		)	(1,811		)
Corporate general and administrative	(1,599		)	(1,434		)
Corporate depreciation and amortization	(26		)	(13		)
Corporate interest (expense) income, net	(942		)	(1,582		)
(Loss) income before income tax expense	$	(1,535	)	$	16,101

Corporate general and administrative expenses include certain costs that benefit the business as a whole but are not directly related to one of the Company's 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.

A reconciliation of reportable segment assets to the Company's consolidated assets is as follows:



	As of
(in thousands)	March 31, 2020		December 31, 2019
Assets:
Refined Coal (1)	$	33,940	$	43,953
Power Generation and Industrials	78,539		80,912
Total segment assets	112,479		124,865
All Other and Corporate (2)	47,704		48,934
Consolidated	$	160,183	$	173,799

(1) Includes $30.3 million and $39.2 million of investments in equity method investees, respectively.

(2) Includes the Company's deferred tax assets.