XML 48 R27.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segment Disclosure
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Disclosure Segment Disclosure
 
The Company’s three operating segments, which are also the Company's reportable segments, are:
 
•North America. 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. 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 North America and International segments by the Products and Systems segment are reflected in the operating performance of each segment.

The chief operating decision maker ("CODM") reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. For the year ended December 31, 2024, our CODM was identified as Manny Stamatakis, the Interim Chief Executive Officer, because he has final authority over performance assessment and resource allocation decisions. Beginning January 1, 2025, our CODM was identified as Natalia Shuman, upon her appointment as our Chief Executive Officer effective January 1, 2025, as she has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.

Segment income (loss) from operations is the primary performance measure used by the CODM to evaluate segment performance and allocate resources, including considering budget-to-actual variances and prior year-to-actual variances on a monthly basis in accordance with GAAP under ASC 280, Segment Reporting. Segment income (loss) from operations for each of the Company's reportable segments are comprised of revenue, selling, general & administrative expenses, and "other expenses." "Other expenses" include cost of revenue, bad debt provision for troubled customers, goodwill impairment charges, reorganization and environmental costs, legal settlements and recoveries, acquisition-related expenses, depreciation and amortization and research and engineering.

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. These items of our operating profit are managed centrally at the corporate level and are excluded from the measure of segment income reviewed by the CODM, as well as the measure of segment performance used for incentive compensation purposes.
 
The accounting policies of the reportable segments are the same as those described in Note 1-Summary of Significant Accounting Policies and Practices.
 
Selected consolidated financial information by segment for the periods shown was as follows. Income (loss) from operations by operating segment includes intercompany transactions, which are eliminated in Corporate and eliminations. 

For the year ended December 31, 2024
Segment
North AmericaInternationalProducts and SystemsTotal Reportable SegmentsCorporate and eliminationsTotal
Revenue$593,527 $135,969 $13,661 $743,157 $(13,517)$729,640 
Selling, general & administrative expenses95,750 29,879 3,677 129,306 27,082 156,388 
Other Expenses435,491 99,815 7,474 542,780 (9,355)533,425 
Income (loss) from operations$62,286 $6,275 $2,510 $71,071 $(31,245)$39,826 

For the year ended December 31, 2023
Segment
North AmericaInternationalProducts and SystemsTotal Reportable SegmentsCorporate and eliminationsTotal
Revenue$579,330 $124,414 $12,986 $716,730 $(11,257)$705,473 
Selling, general & administrative expenses99,446 29,140 4,049 132,635 34,114 166,749 
Other Expenses424,714 107,503 8,670 540,887 (259)540,628 
Income (loss) from operations$55,170 $(12,229)$267 $43,208 $(45,112)$(1,904)

For the year ended December 31, 2022
Segment
North AmericaInternationalProducts and SystemsTotal Reportable SegmentsCorporate and eliminationsTotal
Revenue$573,336 $112,425 $12,727 $698,488 $(11,115)$687,373 
Selling, general & administrative expenses102,087 27,554 4,236 133,877 32,523 166,400 
Other Expenses421,633 81,305 9,483 512,421 (11,247)501,174 
Income (loss) from operations$49,616 $3,566 $(992)$52,190 $(32,391)$19,799 

The tables above only reconcile to income (loss) from operations as our measure of segment profitability and the remainder of the reconciliation to net income (loss) can be seen on the Consolidated Statement of Income (Loss). For the year ended December 31, 2024, Products and Systems segment revenue was comprised of approximately $4.0 million of sales to the International segment, which was eliminated upon consolidation. Intersegment revenue related to sales between other segments was immaterial for the years ended December 31, 2024, 2023, and 2022.

 December 31,
 20242023
Intangible assets, net
North America$30,869 $37,622 
International1,377 2,998 
Products and Systems946 1,168 
Corporate and eliminations6,516 2,206 
 $39,708 $43,994 
 December 31,
 20242023
Total assets
North America$390,052 $402,782 
International97,546 99,398 
Products and Systems11,280 13,259 
Corporate and eliminations24,160 19,337 
 $523,038 $534,776 

 December 31,
 20242023
Long-lived assets
North America$268,608 $279,358 
International24,822 27,967 
Products and Systems1,049 1,423 
Corporate and eliminations7,563 3,572 
 $302,042 $312,320 

Refer to Note 2-Revenue, for revenue by industry and by geographic area for the years ended December 31, 2024, 2023, and 2022.