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BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

16. BUSINESS SEGMENT, GEOGRAPHIC AND CUSTOMER INFORMATION

The Company follows ASC 280 Segment Reporting in determining its reportable segments. The Company considered the way its management team, most notably its chief operating decision maker, makes operating decisions and assesses performance and considered which components of the Company’s enterprise have discrete financial information available. As the Company makes decisions using a manufactured products vs. distributed products and services group focus, its analysis resulted in two reportable segments: T&D Solutions and Critical Power Solutions. The Critical Power Solutions reportable segment is the Company’s Titan Energy Systems Inc. subsidiary. The T&D Solutions reportable segment is an aggregation of all other Company subsidiaries, together with sales and expenses attributable to the strategic sales group for its T&D Solutions marketing activities.

The T&D Solutions segment is involved in the design, manufacture and distribution of electrical transformers and switchgear used primarily by utilities, large industrial and commercial operations to manage their electrical power distribution needs. The Critical Power Solutions segment provides power generation equipment, and aftermarket field-services primarily to help customers ensure smooth, uninterrupted power to operations during times of emergency.

The following tables present information about segment income and loss:

		Year Ended December 31,
		2017				2016
Revenues
T&D Solutions
Transformers		$	86,325			$	81,100
			86,325				81,100
Critical Power Solutions
Equipment			5,898				10,166
Service			9,167				8,366
			15,065				18,532
Consolidated		$	101,390			$	99,632

		Year Ended December 31,
		2017				2016
Depreciation and Amortization
T&D Solutions		$	1,103			$	1,328
Critical Power Solutions			1,533				1,405
Unallocated Corporate Overhead Expenses			68				67
Consolidated		$	2,704			$	2,800

		Year Ended December 31,
		2017				2016
Operating Income (Loss)
T&D Solutions		$	6,823			$	6,708
Critical Power Solutions			(713	)			62
Unallocated Corporate Overhead Expenses			(2,723	)			(3,206	)
Consolidated		$	3,387			$	3,564

The following table presents information which reconciles segment assets to consolidated total assets:

		December 31,
		2017				2016
Assets
T&D Solutions		$	50,709			$	48,643
Critical Power Solutions			7,955				10,620
Corporate			4,282				7,009
Assets of discontinued operations			6,944				11,136
Consolidated		$	69,890			$	77,408

Corporate assets consist primarily of cash and deferred tax assets.

Revenues are attributable to countries based on the location of the Company’s customers:

		Year Ended December 31,
		2017				2016
Revenues
United States		$	64,923			$	68,313
Canada			36,251				31,210
Others			216				109
Total		$	101,390			$	99,632

Sales to Siemens and Hydro-Quebec Utility Company accounted for approximately 18% and 11%, respectively, of the Company’s total sales in 2017, as compared to 15% and 9%, respectively, in 2016.

Excluding sales of our discontinued switchgear business from the Company’s total sales, sales to Siemens and Hydro-Quebec Utility Company accounted for approximately 20% and 12%, respectively, in 2017, as compared to 17% and 10%, respectively, in 2016.

The distribution of the Company’s property, plant and equipment by geographic location is approximately as follows:

		December 31,
		2017				2016
Property, plant and equipment
Canada		$	2,278			$	3,793
United States			708				668
Mexico			3,349				1,464
Total		$	6,335			$	5,925