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Segment Disclosure
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Disclosure Segment Disclosure
 
The Company’s three operating segments are:
 
•Services. This segment provides asset protection solutions predominantly in North America, with the largest concentration in the United States, followed by Canada, consisting primarily of NDT, inspection, mechanical and engineering services that are used to evaluate the safety, structural integrity and reliability of critical energy, industrial and public infrastructure and commercial aerospace components. Software, digital and data services are included in this segment.
 
•International. This segment offers services, products and systems similar to those of the other segments to select markets within Europe, the Middle East, Africa, Asia and South America, but not to customers in China and South Korea, which are served by the Products and Systems segment.
 
•Products and Systems. This segment designs, manufactures, sells, installs and services the Company’s asset protection products and systems, including equipment and instrumentation, predominantly in the United States.
 
Costs incurred for general corporate services, including finance, legal, and certain other costs that are provided to the segments are reported within Corporate and eliminations. During the first quarter of 2022 the Company finalized a transfer pricing study which resulted in additional costs being allocated from Corporate to the operating segments with the majority of the costs allocated to the Services segment. These costs are reflected in operating income (loss) of each segment. Sales to the International segment from the Products and Systems segment and subsequent sales by the International segment of the same items are recorded and reflected in the operating performance of both segments. Additionally, engineering charges and royalty fees charged to the Services and International segments by the Products and Systems segment are reflected in the operating performance of each segment

 The accounting policies of the reportable segments are the same as those described in Note 1-Description of Business and Basis of Presentation. Segment income from operations is one of the primary performance measures used by the chief operating decision maker, to assess the performance of each segment and make resource allocation decisions. Certain general and administrative costs such as human resources, information technology and training are allocated to the segments. Segment income from operations excludes interest and other financial charges and income taxes. Corporate and other assets are comprised principally of cash, deposits, property, plant and equipment, domestic deferred taxes, deferred charges and other assets. Corporate loss from operations consists of administrative charges related to corporate personnel and other charges that cannot be readily identified for allocation to a particular segment.
 

Selected consolidated financial information by segment for the periods shown was as follows: (with intercompany transactions eliminated in Corporate and eliminations)
 
 Three months ended September 30,Nine months ended September 30,
 2022202120222021
Revenue  
Services$152,778 $144,976 $435,251 $414,251 
International25,693 29,100 83,441 88,699 
Products and Systems3,078 3,308 8,666 9,499 
Corporate and eliminations(3,087)(2,828)(8,203)(6,481)
 $178,462 $174,556 $519,155 $505,968 
 
 Three months ended September 30,Nine months ended September 30,
 2022202120222021
Gross profit  
Services$44,869 $41,749 $118,348 $116,587 
International7,694 9,038 25,324 26,278 
Products and Systems1,189 1,422 3,514 4,655 
Corporate and eliminations32 7 47 33 
 $53,784 $52,216 $147,233 $147,553 
Income (loss) from operations by operating segment includes intercompany transactions, which are eliminated in Corporate and eliminations.
 Three months ended September 30,Nine months ended September 30,
 2022202120222021
Income (loss) from operations  
Services$16,700 $16,085 $35,315 $38,991 
International814 1,169 2,678 2,158 
Products and Systems(333)(281)(1,334)(653)
Corporate and eliminations(8,067)(7,737)(22,668)(24,632)
 $9,114 $9,236 $13,991 $15,864 
  
 Three months ended September 30,Nine months ended September 30,
 2022202120222021
Depreciation and amortization    
Services$6,168 $6,192 $18,927 $18,517 
International1,858 2,167 5,835 6,552 
Products and Systems221 221 559 664 
Corporate and eliminations(50)(72)(189)(28)
 $8,197 $8,508 $25,132 $25,705 
 
 September 30, 2022December 31, 2021
Intangible assets, net  
Services$44,631 $51,862 
International4,390 6,344 
Products and Systems1,184 1,042 
Corporate and eliminations132 133 
 $50,337 $59,381 
 
 September 30, 2022December 31, 2021
Total assets  
Services$415,090 $424,058 
International94,153 111,619 
Products and Systems11,947 10,532 
Corporate and eliminations19,256 15,986 
 $540,446 $562,195 
 
Refer to Note 2–Revenue, for revenue by geographic area for the three and nine months ended September 30, 2022 and 2021.