XML 37 R22.htm IDEA: XBRL DOCUMENT v3.6.0.2
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2016
SEGMENT REPORTING  
SEGMENT REPORTING

16. SEGMENT REPORTING

The Company is organized into reporting segments based on the nature of the products offered and business activities from which it earns revenues and incurs expenses for which discrete financial information is available and regularly reviewed by the Company’s chief operating decision maker. In September 2015, the Board approved a plan to divest or otherwise exit the Company’s Services segment; consequently, this segment is now reported as a discontinued operation and the Company has revised its segment presentation to include two reportable operating segments: Towers and Weldments, and Gearing. All current and prior period financial results have been revised to reflect these changes. Effective upon the acquisition of Red Wolf on February 1, 2017, as more fully described in Note 22, “Subsequent Events” in the notes to our consolidated financial statements, the Company will be reporting operations in a new segment, Process Systems. The Company’s segments and their product offerings are summarized below:

Towers and Weldments

The Company manufactures towers for wind turbines, specifically the large and heavier wind towers that are designed for multiple MW wind turbines. Production facilities, located in Manitowoc, Wisconsin and Abilene, Texas, are situated in close proximity to the primary U.S. domestic wind energy and equipment manufacturing hubs. The facilities have a combined annual tower production capacity of up to approximately 500 towers, sufficient to support turbines generating more than 1,000 MW of power. This product segment also encompasses the manufacture of specialty weldments for mining and other industrial customers.

Gearing

The Company engineers, builds and remanufactures precision gears and gearing systems for oil and gas, wind, mining, steel and other industrial applications. The Company uses an integrated manufacturing process, which includes machining and finishing processes in Cicero, Illinois, and heat treatment in Neville Island, Pennsylvania.

Corporate and Other

“Corporate” includes the assets and SG&A expenses of the Company’s corporate office. “Eliminations” comprises adjustments to reconcile segment results to consolidated results.

The accounting policies of the reportable segments are the same as those referenced in Note 1, “Description of Business and Summary of Significant Accounting Policies” of these consolidated financial statements. Summary financial information by reportable segment is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Towers and

    

 

 

    

 

 

 

    

 

    

 

 

 

 

 

 

Weldments

 

Gearing

 

Corporate

 

Eliminations

 

Consolidated

 

For the Year Ended December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

 

$
160,210

 

$
20,630

 

$

 —

 

$

 —

 

$
180,840

 

Intersegment revenues

 

 

 

 —

 

 
18

 

 

 —

 

 
(18)

 

 

 —

 

Net revenues

 

 

 
160,210

 

 
20,648

 

 

 —

 

 
(18)

 

 
180,840

 

Operating profit (loss)

 

 

 
12,788

 

 
(3,244)

 

 
(7,636)

 

 
1

 

 
1,909

 

Depreciation and amortization

 

 

 
4,166

 

 
2,545

 

 
203

 

 

 —

 

 
6,914

 

Capital expenditures

 

 

 
6,161

 

 
386

 

 
77

 

 

 —

 

 
6,624

 

Assets held for sale

 

 

 

 —

 

 
353

 

 
455

 

 

 —

 

 
808

 

Total assets

 

 

 
45,367

 

 
30,415

 

 
244,639

 

 
(202,759)

 

 
117,662

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Towers and

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

Weldments

 

Gearing

 

Corporate

 

Eliminations

 

Consolidated

 

For the Year Ended December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$
170,540

 

$
28,616

 

$

 —

 

$

 —

 

$
199,156

 

Intersegment revenues

 

 
379

 

 
972

 

 

 —

 

 
(1,351)

 

 

 —

 

Net revenues

 

 
170,919

 

 
29,588

 

 

 —

 

 
(1,351)

 

 
199,156

 

Operating profit (loss)

 

 
4,702

 

 
(8,235)

 

 
(8,378)

 

 
3

 

 
(11,908)

 

Depreciation and amortization

 

 
3,954

 

 
5,031

 

 
194

 

 

 —

 

 
9,179

 

Capital expenditures

 

 
2,096

 

 
583

 

 
110

 

 

 —

 

 
2,789

 

Assets held for sale

 

 
554

 

 
506

 

 
3,343

 

 

 —

 

 
4,403

 

Total assets

 

 
38,622

 

 
39,735

 

 
256,238

 

 
(224,688)

 

 
109,907

 

 

The Company generates revenues entirely from transactions completed in the U.S. and its long‑lived assets are all located in the U.S. All intercompany revenue is eliminated in consolidation. During 2016, three customers each accounted for more than 10% of total net revenues. These three customers accounted for revenues of $111,480,  $23,018, and $21,237 for fiscal year 2016 and were reported within the Towers and Weldments segment. During 2015, two customers accounted for more than 10% of total net revenues. These two customers accounted for revenues of $124,759 and $45,214 for fiscal year 2015 and were reported within the Towers and Weldments segment. During the years ended December 31, 2016 and 2015, five customers accounted for 91% and 92%, respectively, of total net revenues.