Team Industrial Annual Report 2018

TEAM INC
10-K
03/19/2019
TEAM, INC.
Delaware 74-1765729
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
13131 Dairy Ashford, Suite 600, Sugar Land, 77,478

Texas
(Address of Principal Executive Offices) (Zip Code)
____________________________
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TEAM INC
10-K
03/19/2019
Securities registered pursuant to Section 12(g) of the Act: None
Large accelerated filer ? Accelerated filer ?

Non-accelerated filer ? Smaller reporting company ?
Emerging growth company ?
____________________________
TEAM INC
10-K
03/19/2019
SELECTED FINANCIAL DATA
PART I 1
ITEM 1. BUSINESS 1
General Information 1
Narrative Description of Business 2
Acquisitions 5
Marketing and Customers 6
Seasonality 6
Employees 7
Regulation 7
Intellectual Property 7
Competition 7
Available Information 7
ITEM 1A. RISK FACTORS 8
ITEM 1B. UNRESOLVED STAFF COMMENTS 14
ITEM 2. PROPERTIES 14
ITEM 3. LEGAL PROCEEDINGS 14
ITEM 4. MINE SAFETY DISCLOSURES 14
PART II 15
ITEM 5. MARKET FOR REGISTRANT?S COMMON EQUITY, 15

RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
ITEM 6. SELECTED FINANCIAL DATA 17
ITEM 7. MANAGEMENT?S DISCUSSION AND ANALYSIS 17
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES 17
ABOUT MARKET RISK
ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND 17
SUPPLEMENTARY DATA
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS 17
ON ACCOUNTING AND FINANCIAL DISCLOSURE
ITEM 9A. CONTROLS AND PROCEDURES 17
Management?s Annual Report on Internal 18
Control Over Financial Reporting
ITEM 9B. OTHER INFORMATION 18
PART III 19
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE 19

GOVERNANCE
ITEM 11. EXECUTIVE COMPENSATION 19
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL 19
OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, 19
AND DIRECTOR INDEPENDENCE
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 19
PART IV 20
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 20

ITEM 16. FORM 10-K SUMMARY 22
SIGNATURES 23
FINANCIAL TABLE OF CONTENTS 24
____________________________
TEAM INC
10-K
03/19/2019
Performance Graph
5/13 5/14 5/15

Team, Inc. 100.00 116.22 110.34
NYSE Composite 100.00 117.83 123.98
Old Peer Group 100.00 150.97 95.43
New Peer Group 100.00 117.76 95.25
____________________________
12/15 12/16 12/17
88.61 108.82 41.31
115.37 129.14 153.32
104.74 131.42 109.53
81.81 120.38 132.73
12/18
40.62
139.60
84.91
106.30
TEAM INC
10-K
03/19/2019
EXHIBIT
(a) 1 Consolidated Financial Statements filed

as part of this report are listed in the Financial
Table of Contents included in this report
and incorporated by reference in this report
in Part II, Item 7 ? Management?s Discussion
and Analysis of Financial Condition and
Results of Operations? and Item 8, ?Consolidated
Financial Statements and Supplementary
Data.?
2 All schedules for which provision is made
in the applicable accounting regulations
of the SEC are listed in this report in Part
II, Item 8, ?Consolidated Financial Statements
and Supplementary Data.?
3 See exhibits listed under Part (b) below.
(b) Exhibits
____________________________
TEAM INC
10-K
03/19/2019
EXHIBIT
Exhibit Description
Number
3.10 Amended and Restated Certificate of Incorporation

of the Company (filed as Exhibit 3.1 to the
Company?s Current Report on Form 8-K filed
on December 2, 2011, incorporated by reference
herein).
3.20 Certificate of Amendment of Amended and

Restated Certificate of Incorporation
of the Company, dated October 24, 2013 (filed
as Exhibit 3.1 to the Company?s Current
Report on Form 8-K filed on October 25, 2013,
incorporated by reference herein).
3.30 Amended and Restated Bylaws of the Company

(filed as Exhibit 3.3 to the Company?s Annual
Report on Form 10-K for year ended December
31, 2017, incorporated by reference herein).
4.10 Certificate representing shares of common

stock of Company (filed as Exhibit 4(1)
to the Company?s Registration Statement
on Form S-1, File No. 2-68928, incorporated
by reference herein).
4.20 Indenture, dated July 31, 2017, between

Team, Inc. and Branch Banking and Trust
Company, as trustee, relating to the Company?s
5.00% Convertible Senior Notes Due 2023
(filed as Exhibit 4.1 to the Company?s Current
Report on Form 8-K filed on July 31, 2017,
10.1? Team, Inc. 2004 Restricted Stock Option

and Award Plan dated June 24, 2004 (filed
as Exhibit 10.21 to the Company?s Annual
Report on Form 10-K for the year ended May
10.2? Team, Inc. 2006 Stock Incentive Plan (as

Amended and Restated August 1, 2009) (filed
Report on Form 8-K filed on September 30,
2009, incorporated by reference herein).
10.3? Form of Team, Inc. Stock Unit Award Agreement

(filed as Exhibit 10.1 to the Company?s
Current Report on Form 8-K filed on October
17, 2013, incorporated by reference herein.
10.4? Furmanite Corporation 1994 Stock Incentive

Plan, Amendment and Restatement effective
May 9, 2013 (filed as Exhibit 4.4 to the Company?s
Registration Statement on Form S-8, File
No. 333-209871, filed on March 1, 2016,
10.5? Team, Inc. 2016 Equity Incentive Plan (incorporated

herein by reference to Appendix A of the
Company?s Definitive Proxy on Schedule
14A, as filed with the SEC on April 12, 2016).
10.6? Team, Inc. 2018 Equity Incentive Plan (filed

Report on Form S-8, File No. 333-225727,
filed on June 19, 2018, incorporated by
reference herein).
10.7? Form of Stock Unit Agreement (filed as Exhibit

10.2 to the Company?s Current Report on
Form 8-K filed on October 17, 2008, incorporated
10.8? Form of Performance-Based Stock Unit Agreement

Current Report on Form 8-K filed on October
10.9? Form of Performance Share Award Agreement

Current Report on Form 8-K filed November
10.10? Form of Performance Award Agreement (filed

as Exhibit 10.14 to the Company?s Annual
Report on Form 10-K filed on March 16, 2017,
10.11? Form of Restricted Stock Unit Award Agreement

for the Stock Units awarded under the Team,
Inc. 2018 Equity Incentive Plan
____________________________
TEAM INC
10-K
03/19/2019
EXHIBIT
Exhibit Description
Number
10.28 ? Form of Performance Unit Award Agreement
between Team, Inc. and Amerino Gatti (filed
Report on Form 8-K filed on January 16, 2018,
10.29 Settlement Agreement, by and among Team,

Inc. and Engine Capital, L.P. (together
with the entities listed on the signature
page thereto), dated February 8, 2018 (filed
Report on Form 8-K filed on February 9, 2018,
10.30 Confidentiality Agreement by and among

Team, Inc. and Engine Capital. L.P. (together
with the entities listed on the signature
page thereto, dated July 2, 2018 (filed
Report on Form 8-K filed on July 6, 2018,
10.31 ? Form of Indemnification Agreement (filed

Report on Form 8-K filed on February 9, 2018,
10.32 ? Transition, Severance, and Release Agreement

dated July 2, 2018 between Team, Inc. and
Arthur F. Victorson (filed as Exhibit 10.1
to the Company?s Current Report on Form
8-K filed on July 3, 2018, incorporated
10.33 ? Offer Letter, dated July 1, 2018, between

TEAM, Inc. and Grant Roscoe (filed as Exhibit
10.1 to the Company?s Current Report on
Form 8-K/A filed on July 11, 2018, incorporated
10.34 ? Offer Letter dated November 26, 2018, by

and between Team, Inc. and Susan M. Ball
Current Report on Form 8-K filed on November
10.35 ? Transition, Severance, and Release Agreement

dated November 26, 2018 between Team, Inc.
and Greg L. Boane (filed as Exhibit 10.2
to the Company?s Current Report on Form
8-K filed on November 28, 2018, incorporated
10.36 ? Consulting Agreement dated November 26,

2018 between Team, Inc. and Greg L. Boane
Current Report on Form 8-K filed on November
21 Subsidiaries of the Company.
23.10 Consent of Independent Registered Public

Accounting Firm-KPMG LLP.
31.10 Certifications pursuant to Section 302

of the Sarbanes-Oxley Act of 2002.



101.INS XBRL Instance Document.
101.SCH XBRL Taxonomy Schema Document.
101.CAL XBRL Calculation Linkbase Document.
101.DEF XBRL Definition Linkbase Document.
101.LAB XBRL Label Linkbase Document.
101.PRE XBRL Presentation Linkbase Document.
____________________________
TEAM INC
10-K
03/19/2019
SIGNATURES
T EAM , I NC .
/S/ A MERINO G ATTI

Amerino Gatti
Chief Executive Officer
(Principal Executive Officer)
____________________________
TEAM INC
10-K
03/19/2019
SIGNATURES
/S/ A MERINO G ATTI
(Amerino Gatti)
/ S / S USAN M. B ALL
(Susan M. Ball)
/ S / J EFFERY G. D AVIS
(Jeffery G. Davis)
/ S / B RIAN K. F ERRAIOLI
(Brian K. Ferraioli)
/ S / S YLVIA J. K ERRIGAN
(Sylvia J. Kerrigan)
/ S / E MMETT J. L ESCROART
(Emmett J. Lescroart)
/ S / M ICHAEL A. L UCAS
(Michael A. Lucas)
/ S / C RAIG L. M ARTIN
(Craig L. Martin)
/ S / L OUIS A. W ATERS
(Louis A. Waters)
/ S / G ARY G. Y ESAVAGE
(Gary G. Yesavage)
____________________________
Chief Executive Officer and Director (Principal March 19, 2019
Executive Officer)
Executive Vice President, Chief Financial March 19, 2019

Officer (Principal Financial Officer
and Principal Accounting Officer)
Director March 19, 2019
Chairman of the Board March 19, 2019

TEAM INC
10-K
03/19/2019
FINANCIAL TABLE OF CONTENTS
Management's Discussion and Analysis 25

of Financial Condition and Results of Operations
Cautionary Statement for the Purpose of 25
Safe Harbor Provisions
General Information 25
Results of Operations 27
Year Ended December 31, 2018 Compared to 27
Year Ended December 31, 2017
Year Ended December 31, 2017 Compared to 30
Liquidity and Capital Resources 32
Contractual Obligations 36
Critical Accounting Policies 37
Quantitative and Qualitative Disclosures 40
about Market Risk
Reports of Independent Registered Public 42
Accounting Firm
Consolidated Balance Sheets as of December 44
31, 2018 and 2017
Consolidated Statements of Operations 45
for the Years Ended December 31, 2018, 2017
and 2016
Consolidated Statements of Comprehensive 46
Loss for the Years Ended December 31, 2018,
2017 and 2016
Consolidated Statements of Shareholders? 47
Equity for the Years Ended December 31,
2018, 2017 and 2016
Consolidated Statements of Cash Flows 48
for the Years Ended December 31, 2018, 2017
and 2016
Notes to Consolidated Financial Statements 49
Quarterly Financial Data (Unaudited) 91
Five Year Comparison 92
____________________________
TEAM INC
10-K
03/19/2019
Year Ended December 31, 2018 Compared to Year Ended December 31, 2017
Twelve Months Ended

December 31,
7/10/1905
Revenues by business segment:

IHT $617,378 $588,4
MS 532,365 529,9
Quest Integrity 97,186 81,7
Total $1,246,929 $1,200,2
Operating income (loss):

IHT 2 $37,329 $11,1
MS 2 6,323 (33,99
Corporate and shared support services (102,751) (104,58
Total ($38,961) ($115,11
____________________________
Increase
(Decrease)
7/9/1905 $0 %
$588,441 $28,937 4.90 %

529,973 2,392 0.50 %
81,797 15,389 18.80 %
$1,200,211 $46,718 3.90 %
$11,128 $26,201 235.50 %

(33,993) 40,316 NM 1
12,337 7,801 63.20 %
(104,582) 1,831 1.80 %
($115,110) $76,149 66.20 %
TEAM INC
10-K
03/19/2019
Operating income (loss).
Expenses reflected in operating income

(loss) that are not indicative of the Company?s
core operating activities (unaudited):
IHT
Twelve Months Ended December 31, 2018
Implementation of the new Enterprise Resource $-
Planning (?ERP?) system
Restructuring and other related charges 1 2,995
Executive severance/transition cost 2 -
Revaluation of contingent consideration -
Asset write-offs and disposals -
Professional fees, legal and other? 1,086
Total $4,081
Implementation of the new ERP system $-
Restructuring and other related charges 1 966
Executive severance/transition cost 2 -
Natural disaster costs 4 1,325
Goodwill impairment loss 21,140
Revaluation of contingent consideration (1,174)
Asset write-offs and disposals 1,210
Professional fees, legal and other? -
Total $23,467
____________________________
MS Quest Integrity Corporate and sha
$- $-
2,514 418
- -
- - (2
1,429 - -
315 - 23,
$4,258 $418 $25,
$- $- $13,
393 429
- - 1,
633 -
54,101 - -
- - -
- - -
163 - 12,
$55,290 $429 $28,
orate and shared support s Total
$87 $87
800 6,727
855 855
(202) (202)
1,429
23,564 24,965
$25,104 $33,861
$13,776 $13,776
863 2,651
1,190 1,190
95 2,053
75,241
(1,174)
1,210
12,552 12,715
$28,476 $107,662
TEAM INC
10-K
03/19/2019
Year Ended December 31, 2017 Compared to Year Ended December 31, 2016
Twelve Months Ended

December 31,
7/9/1905
Revenues by business segment:

IHT $588,441 $589,4
MS 529,973 539,6
Total $1,200,211 $1,196,6

IHT 2 $11,128 $43,3
MS 2 (33,993) 27,2
Total ($115,110) ($3,11
____________________________
Increase
(Decrease)
7/8/1905 $0 %
$589,478 ($1,037) (0.20) %

539,627 (9,654) (1.80) %
67,591 14,206 21.00 %
$1,196,696 $3,515 0.30 %
$43,367 ($32,239) (74.30) %

27,283 (61,276) NM 1
4,780 7,557 158.10 %
(78,548) (26,034) (33.10) %
($3,118) ($111,992) NM 1
TEAM INC
10-K
03/19/2019
Operating income (loss).
Expenses reflected in operating income

(loss) that are not indicative of the Company?s
core operating activities (unaudited):
IHT
Restructuring and other related charges 966
Executive severance/transition cost? -
Natural disaster costs? 1,325
Goodwill impairment loss 21,140
Revaluation of contingent consideration (1,174)
Asset write-offs 1,210
Professional fees, legal and other? -
Total $23,467
Restructuring and other related charges -
Acquisition costs 4 307
Natural disaster costs? 162
Revaluation of contingent consideration -
Asset write-offs 650
Professional fees, legal and other? (184)
Total $935
____________________________
MS Quest Integrity Corporate and sha
$- $- $13,
393 429
- - 1,
633 -
54,101 - -
- - -
- - -
163 - 12,
$55,290 $429 $28,
$- $- $7,
5,513 - -
257 114 6,
233 - -
2,184 - -
- - -
728 3,014 7,
$8,915 $3,128 $21,
orate and shared support s Total
$13,776 $13,776
863 2,651
1,190 1,190
95 2,053
75,241
(1,174)
1,210
12,552 12,715
$28,476 $107,662
$7,631 $7,631
$5,513
6,736 7,414
395
2,184
650
7,224 10,782
$21,591 $34,569
TEAM INC
10-K
03/19/2019
Contractual Obligations
Less than 1 year

Principal payments on Credit Facility $-
and Convertible Senior Notes
Interest payments on Credit Facility and 19,408
Convertible Senior Notes 1
Capital lease obligations 583
Operating lease obligations 23,315
Defined benefit pension plan contribution 2,292
obligations 2
Total $45,598
____________________________
1-3 years 3-5 years More than 5 years
$156,843 $230,000 $-
27,062 23,000 -
1,004 1,049 5,631

29,435 17,719 23,224
7,641 7,641 30,882
$221,985 $279,409 $59,737

ars Total
$386,843
69,470
8,267
93,693
48,456
$606,729
TEAM INC
10-K
03/19/2019
Contractual Obligations
December 31,
7/10/1905
Long-term liabilities per consolidated
balance sheets:
Long-term debt:
Credit Facility $156,843
Convertible debt 195,184
Capital lease obligations 5,356
Current maturities (569)
Long-term debt, excluding current maturities $356,814
Defined benefit pension liability $10,940
Other long-term liabilities $6,910
Other long-term obligations:

Outstanding letters of credit $22,800
Operating leases $93,693
____________________________
7/9/1905
$177,857
209,892
-
-
$387,749
$14,976
$9,758
$22,540
$119,165
TEAM INC
10-K
03/19/2019
Intangibles Goodwill and Other
Twelve Months Ended

December 31, 2018
IHT MS
Balance at beginning of year $194,211 $56,600
Foreign currency adjustments (1,603) (712)
Disposal - (261)
Balance at end of year $192,608 $55,627
____________________________
Quest Integrity Total
$33,993 $284,804
(578) (2,893)
- (261)
$33,415 $281,650
TEAM INC
10-K
03/19/2019
Twelve Months Ended

December 31, 2017
IHT MS
Balance at beginning of period $213,475 $109,059
Foreign currency adjustments 1,876 1,642
Impairment loss (21,140) (54,101)
Balance at end of period $194,211 $56,600
____________________________
$33,252 $355,786
741 4,259
- (75,241)
$33,993 $284,804
TEAM INC
10-K
03/19/2019
Balance Sheet
December 31,
7/10/1905
ASSETS
Current assets:
Cash and cash equivalents $18,288
Receivables, net of allowance of $15,182 268,352
and $11,308
Inventory 48,540
Income tax receivable 331
Prepaid expenses and other current assets 19,445
Total current assets 354,956
Property, plant and equipment, net 194,794
Intangible assets, net of accumulated 131,372
amortization of $82,406 and $54,184
Goodwill 281,650
Other assets, net 7,397
Deferred income taxes 7,652
Total assets $977,821
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt and capital $569
lease obligations
Accounts payable 44,074
Other accrued liabilities 95,308
Total current liabilities 139,951
Deferred income taxes 6,106
Long-term debt and capital lease obligations 356,814
Defined benefit pension liability 10,940
Other long-term liabilities 6,910
Total liabilities 520,721
Commitments and contingencies
Equity:
Preferred stock, 500,000 shares authorized, -
none issued
Common stock, par value $0.30 per share, 9,053
60,000,000 shares authorized; 30,184,330
and 29,953,041 shares issued
Additional paid-in capital 400,989
Retained earnings 81,450
Accumulated other comprehensive loss (34,392)
Total equity 457,100
Total liabilities and equity $977,821
____________________________
7/9/1905
$26,552
301,963
49,703
892
17,950
397,060
203,219
160,161
284,804
5,798
4,793
$1,055,835
$-
55,312
92,472
147,784
18,394
387,749
14,976
9,758
578,661
8,984
352,500
135,486
(19,796)
477,174
$1,055,835
TEAM INC
10-K
03/19/2019
Income Statement
Twelve Months Ended

December 31,
7/10/1905
Revenues $1,246,929
Operating expenses 918,673
Gross margin 328,256
Selling, general and administrative expenses 360,692
Restructuring and other related charges, 6,727
net (see Note 17)
(Gain) loss on revaluation of contingent (202)
consideration
Goodwill impairment loss (see Note 1) -
Operating loss (38,961)
Interest expense, net 30,875
Write-off of deferred loan costs -
Loss (gain) on convertible debt embedded 24,783
derivative (see Note 10)
Other (income) expense, net (410)
Loss from continuing operations before (94,209)
income taxes
Less: Benefit for income taxes (see Note (31,063)
9
Loss from continuing operations (63,146)
Loss from discontinued operations, net -
of income tax
Net loss ($63,146)
Basic loss per common share:

Continuing operations ($2.10)
Discontinued operations -
Net loss ($2.10)
Diluted loss per common share:

Discontinued operations -
Net loss ($2.10)
____________________________
7/9/1905 7/8/1905
$1,200,211 $1,196,696
890,212 868,144
309,999 328,552
348,391 323,973
2,651 5,513
(1,174) 2,184
75,241 -
(115,110) (3,118)
21,487 12,667
1,244 -
(818) -
510 (127)
(137,533) (15,658)
(53,078) (3,093)
(84,455) (12,565)
- (111)
($84,455) ($12,676)
($2.83) ($0.45)
- -
($2.83) ($0.45)
($2.83) ($0.45)
- -
($2.83) ($0.45)
TEAM INC
10-K
03/19/2019
Income Statement
Twelve Months Ended

December 31,
7/10/1905
Net loss ($63,146)
Other comprehensive income (loss) before
tax:
Foreign currency translation adjustment (9,241)
Foreign currency hedge 658
Defined benefit pension plans:
Net actuarial gain (loss) arising during 109
period
Prior service cost arising during period (669)
Amortization of net actuarial (gain) loss (78)
Other comprehensive income (loss), before (9,221)
tax
Tax (provision) benefit attributable (3,045)
to other comprehensive income (loss)
Other comprehensive income (loss), net (12,266)
of tax
Total comprehensive loss ($75,412)
____________________________
7/9/1905 7/8/1905
($84,455) ($12,676)
10,607 (3,849)
(1,802) 481
3,226 (10,518)
- -
71 -
12,102 (13,886)
(2,898) 3,260
9,204 (10,626)
($75,251) ($23,302)
TEAM INC
10-K
03/19/2019
Shareholders' Equity
Common
Shares
Balance at January 1, 2016 21,837

Net loss -
Foreign currency translation adjustment, -
net of tax
Foreign currency hedge, net of tax -
Defined benefit pension plans, net of tax -
Non-cash compensation -
Vesting of stock awards 142
Tax effect of share-based payment arrangements -
Issuance of common stock in Furmanite acquisition 8,208
and conversion of Furmanite share-based
awards
Exercise of stock options 251
Issuance of common stock 168
Purchase of treasury stock -
Retirement of treasury stock (821)
Other
Balance at December 31, 2016 29,785
Adoption of new accounting principle -
Net loss -
net of tax
Issuance of convertible debt, net of tax -
Exercise of stock options 16
Adoption of new accounting principles -
Net loss -
net of tax
Reclassification of convertible debt -
embedded derivative, net of tax
____________________________
Treasury Common Treasury
Shares Stock Stock
(547) $6,552 ($21,138)

- - -
- - -
- - -
- - -
- - -
- 40 -
- - -
- 2,462 -
- 75 -
- 50 -
(274) - (7,593)
821 (245) 28,731
- - -
- 8,934 -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- 45 -
- 5 -
- 8,984 -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- 69 -
- $9,053 $-
Additional Retained Accumulated
Paid-in Earnings Other
Capital Comprehensive
Loss
$120,126 $250,980 ($18,3
- (12,676) -
- - (2,4
- -
- - (8,4
7,313 - -
(1,749) - -
(535) - -
209,068 - -
5,828 - -
5,884 - -
- - -
(9,129) (19,357) -
(50) - -
336,756 218,947 (29,0
- 994 -
- (84,455) -
- - 7,
- - (1,1
- - 2,
8,415 - -
7,876 - -
(992) - -
445 - -
352,500 135,486 (19,7
- 9,110 (2,3
- (63,146) -
- - (12,1
- -
- - (5
37,698 - -
12,256 - -
(1,465) - -
$400,989 $81,450 ($34,3
mulated Total
r Shareholders?
rehensive Equity
($18,374) $338,146
(12,676)
(2,498) (2,498)
300 300
(8,428) (8,428)
7,313
(1,709)
(535)
211,530
5,903
5,934
(7,593)
-
(50)
(29,000) 535,637
994
(84,455)
7,688 7,688
(1,114) (1,114)
2,630 2,630
8,415
7,876
(947)
450
(19,796) 477,174
(2,330) 6,780
(63,146)
(12,164) (12,164)
496 496
(598) (598)
37,698
12,256
(1,396)
($34,392) $457,100
TEAM INC
10-K
03/19/2019
Cash Flows
Twelve Months Ended

December 31,
7/10/1905
Cash flows from operating activities:
Net loss ($63,146)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization 64,862
Write-off of deferred loan costs -
Amortization of deferred loan costs and 7,022
debt discount
Provision for doubtful accounts 11,662
Foreign currency loss (gain) 1,712
Deferred income taxes (31,734)
(Gain) loss on revaluation of contingent (202)
consideration
(Gain) loss on asset disposal (552)
Loss (gain) on convertible debt embedded 24,783
derivative
Goodwill impairment loss -
Non-cash compensation cost 12,256
Other, net (3,762)
(Increase) decrease (net of the effects
of acquisitions):
Receivables 15,386
Inventory (21)
Increase (decrease) (net of the effects
of acquisitions):
Accounts payable (8,994)
Income taxes (3,514)
Net cash provided by (used) in operating 41,859
activities
Cash flows from investing activities:
Capital expenditures (27,164)
Net proceeds from sale of discontinued -
operations
Business acquisitions, net of cash acquired -
Proceeds from disposal of assets 2,580
Other (443)
Net cash used in investing activities (25,027)
Cash flows from financing activities:
Net (payments) borrowings under revolving (19,690)
credit agreement
Payments under term loan -
Issuance of convertible debt, net of issuance -
costs
Deferred consideration payments -
Contingent consideration payments (1,106)
Purchase of treasury stock -
Debt issuance costs on Credit Facility (855)
Corporate tax effect from share-based -
payment arrangements
Exercise of stock options -
Issuance of common stock, net of issuance -
costs
Payments related to withholding tax for (1,390)
share-based payment arrangements
Net cash (used in) provided by financing (23,041)
activities
Effect of exchange rate changes on cash (2,055)
Net decrease in cash and cash equivalents (8,264)
Cash and cash equivalents at beginning 26,552
of period
Cash and cash equivalents at end of period $18,288
Supplemental disclosure of cash flow information:
Cash paid (refunded) during the year for:
Interest $24,924
Income taxes $2,720
____________________________
7/9/1905 7/8/1905
($84,455) ($12,676)
52,143 48,673
1,244 -
3,085 541
7,097 6,336
499 (93)
(66,246) (4,236)
(1,174) 2,184
553 1,540
(818) -
75,241 -
7,876 7,313
(3,789) (1,182)
(39,820) 16,518
614 2,119
6,642 (163)
6,424 8,361
14,896 (2,346)
6,260 6,675
(13,728) 79,564
(36,798) (45,812)
- 13,295
- (48,382)
3,259 4,232
(457) 827
(33,996) (75,840)
(23,006) 15,996
(170,000) (20,000)
222,311 -
- (694)
(1,278) (1,816)
- (7,593)
(1,938) (801)
- (535)
450 5,903
- 5,243
(947) (1,709)
25,592 (6,006)
2,468 (1,327)
(19,664) (3,609)
46,216 49,825
$26,552 $46,216
$13,176 $12,207
$5,719 ($2,741)
TEAM INC
10-K
03/19/2019
Property, plant and equipment.
Classification Useful Life

Buildings 20-40 years
Enterprise Resource Planning (?ERP?) 15 years
System
Leasehold improvements 2-15 years
Machinery and equipment 2-12 years
Furniture and fixtures 2-10 years
Computers and computer software 2-5 years
Automobiles 2-5 years
____________________________
TEAM INC
10-K
03/19/2019
Twelve Months Ended

December 31, 2018
IHT MS
Foreign currency adjustments (1,603) (712)
Disposal - (261)
____________________________
$33,993 $284,804
(578) (2,893)
- (261)
$33,415 $281,650
TEAM INC
10-K
03/19/2019
Twelve Months Ended

December 31, 2017
IHT MS
Balance at beginning of year $213,475 $109,059
Foreign currency adjustments 1,876 1,642
Impairment loss (21,140) (54,101)
Balance at end of year $194,211 $56,600
____________________________
$33,252 $355,786
741 4,259
- (75,241)
$33,993 $284,804
TEAM INC
10-K
03/19/2019
Earnings (loss) per share.
Twelve Months Ended

December 31,
7/10/1905
Weighted-average number of basic shares 30,031
outstanding
Stock options, stock units and performance -
awards
Convertible senior notes -
Total shares and dilutive securities 30,031
____________________________
7/9/1905 7/8/1905
29,849 28,095
- -
- -
29,849 28,095
TEAM INC
10-K
03/19/2019
Non-cash investing and financing activities.
Twelve Months Ended

December 31,
7/10/1905
Property acquired under capital lease $5,302
Note received as consideration in disposal $-
of discontinued operations
Issuance of common stock - Furmanite acquisition $-
____________________________
7/9/1905 7/8/1905
$- $-
$- $1,511
$- $209,529
TEAM INC
10-K
03/19/2019
Revision to prior period consolidated financial statements.
December 31, 2017

As Previously Reported
Effect on consolidated balance sheet
Liabilities and Equity
Deferred income taxes $38,100
Total Liabilities $598,367
Retained earnings $115,780
Total equity $457,468

As Previously Reported
Effect on consolidated statement of operations
Benefit for income taxes ($33,372)
Loss from continuing operations ($104,161)
Net loss ($104,161)
Basic loss per common share:

Net loss ($3.49)
Diluted loss per common share:

Net loss ($3.49)
____________________________
Adjustments As Revised
($19,706) $18,394
($19,706) $578,661
$19,706 $135,486
$19,706 $477,174
mber 31, 2017

Adjustments As Revised
($19,706) ($53,078)
$19,706 ($84,455)
$19,706 ($84,455)
0.66 ($2.83)
0.66 ($2.83)
0.66 ($2.83)
0.66 ($2.83)
TEAM INC
10-K
03/19/2019
ASU No. 2014-09
December 31, 2018

Without adoption of ASC 606
Effect on consolidated balance sheet
Assets
Prepaid expenses and other current assets $16,321
Liabilities and Equity

Deferred income taxes $5,494
Retained earnings $78,938
____________________________
Adjustments to apply ASC 606 As reported
$3,124 $19,445
$612 $6,106
$2,512 $81,450
TEAM INC
10-K
03/19/2019
ASU No. 2014-09

Without adoption of ASC 606
Effect on consolidated statement of operations
Revenues $1,251,694
Operating expenses $917,768
Benefit for income taxes ($29,660)
Net loss ($58,879)
____________________________
mber 31, 2018
Adjustments to apply ASC 606 As reported
($4,765) $1,246,929
$905 $918,673
($1,403) ($31,063)
($4,267) ($63,146)
TEAM INC
10-K
03/19/2019
Disaggregation of revenue.

United States and Canada Other Countries
Revenue:
IHT $602,615 $14,763
MS 383,405 148,960
Total $1,048,282 $198,647
____________________________
Total
$617,378
532,365
97,186
$1,246,929
TEAM INC
10-K
03/19/2019
Disaggregation of revenue.

Asset Integrity Management Repair and Maintenance Service
Revenue:
IHT $46,726 $27,420
MS 402 523,701
Quest Integrity 97,186 -
Total $144,314 $551,121
____________________________
Heat Treating Non-Destructive Evaluation Other
$80,840 $447,080 $15,312

2,753 - 5,509
- - -
$83,593 $447,080 $20,821
Total
$617,378
532,365
97,186
$1,246,929
TEAM INC
10-K
03/19/2019
Contract balances.
December 31, 2018 January 1, 2018

Trade accounts receivable, net 1 $268,352 $301,963
Contract assets 2 $5,745 $9,823
Contract liabilities 3 $1,784 $5,415
____________________________
ary 1, 2018
$301,963
$9,823
$5,415
TEAM INC
10-K
03/19/2019
3. ACQUISITION
February 29, 2016

Common stock (8,208,006 shares) $209,529
Converted share-based payment awards 2,001
Cash 70,811
Total consideration $282,341
____________________________
TEAM INC
10-K
03/19/2019
3. ACQUISITION
February 29, 2016

Cash and cash equivalents $37,734
Accounts receivable 65,925
Inventory 25,847
Current deferred tax assets 19,857
Current assets of discontinued operations 18,623
Property, plant and equipment 63,259
Intangible assets 88,958
Goodwill 89,646
Other non-current assets 687
Non-current deferred tax assets 2,542
Total assets acquired 436,122
Accounts payable 12,359

Income taxes payable 229
Current liabilities of discontinued operations 1,434
Non-current deferred tax liabilities 91,431
Defined benefit pension liability 13,509
Other long-term liabilities 1,692
Total liabilities assumed 153,781
Net assets acquired $282,341
____________________________
TEAM INC
10-K
03/19/2019
3. ACQUISITION
Pro forma data

Year Ended
December 31,
7/8/1905
(unaudited)
Revenues $1,240,466
Income (loss) from continuing operations ($7,497)
attributable to Team shareholders
Earnings (loss) per share from continuing
operations:
Basic ($0.25)
Diluted ($0.25)
____________________________
TEAM INC
10-K
03/19/2019
4. RECEIVABLES
December 31,
7/10/1905 7/9/
Trade accounts receivable $207,266 $244,133
Unbilled revenues 76,268 69,138
Allowance for doubtful accounts (15,182) (11,308)
Total $268,352 $301,963
____________________________
7/9/1905
$244,133
69,138
(11,308)
$301,963
TEAM INC
10-K
03/19/2019
4. RECEIVABLES
Twelve Months Ended

December 31,
7/10/1905 7/9/
Provision for doubtful accounts 11,662 7,097
Write-off of bad debts (7,788) (3,624)
____________________________
7/9/1905 7/8/1905
$7,835 $3,548
7,097 6,336
(3,624) (2,049)
$11,308 $7,835
TEAM INC
10-K
03/19/2019
5. INVENTORY
December 31,
7/10/1905 7/9/1905
Raw materials $8,448 $8,707
Work in progress 3,900 2,836
Finished goods 36,192 38,160
Total $48,540 $49,703
____________________________
TEAM INC
10-K
03/19/2019
6. PROPERTY, PLANT AND EQUIPMENT
December 31,
7/10/1905
Land $6,376
Buildings and leasehold improvements 57,006
Machinery and equipment 269,084
Furniture and fixtures 10,253
Capitalized ERP system development costs 46,637
Computers and computer software 15,826
Automobiles 4,879
Construction in progress 6,550
Total 416,611
Accumulated depreciation and amortization (221,817)
Property, plant, and equipment, net $194,794
____________________________
7/9/1905
$6,698
47,924
261,343
9,405
46,637
13,052
5,070
12,613
402,742
(199,523)
$203,219
TEAM INC
10-K
03/19/2019
7. INTANGIBLE ASSETS
December 31, 2018

Gross Accumulated
Carrying Amortization
Amount
Customer relationships $174,894 ($51,160)
Non-compete agreements 5,433 (4,882)
Trade names 24,753 (20,594)
Technology 7,847 (5,187)
Licenses 851 (583)
Total $213,778 ($82,406)
____________________________
Net
Carrying
Amount
$123,734
551
4,159
2,660
268
$131,372
TEAM INC
10-K
03/19/2019
7. INTANGIBLE ASSETS
December 31, 2017

Gross Accumulated
Carrying Amortization
Amount
Customer relationships $175,226 ($38,712)
Non-compete agreements 5,563 (4,509)
Trade names 24,830 (6,211)
Technology 7,867 (4,292)
Licenses 859 (460)
Total $214,345 ($54,184)
____________________________
Net
Carrying
Amount
$136,514
1,054
18,619
3,575
399
$160,161
TEAM INC
10-K
03/19/2019
8. OTHER ACCRUED LIABILITIES
December 31,
7/10/1905
Payroll and other compensation expenses $47,988
Insurance accruals 16,001
Property, sales and other non-income related 7,271
taxes
Lease commitments 1,145
Contract liabilities 1,784
Accrued commission 2,290
Accrued interest 5,261
Volume discount 4,322
Contingent consideration 429
Professional fees 1,219
Other 7,598
Total $95,308
____________________________
7/9/1905
$40,988
15,799
6,483
1,616
6,102
1,473
5,950
1,545
1,246
1,098
10,172
$92,472
TEAM INC
10-K
03/19/2019
9. INCOME TAXES
Current Deferred
Twelve months ended December 31, 2018:
U.S. Federal ($3,295) ($27,6
State & local 509 (2,3
Foreign jurisdictions 3,457 (1,7
$671 ($31,7
U.S. Federal $6,177 ($62,2
State & local 170 (4,8
Foreign jurisdictions 6,821
$13,168 ($66,2
U.S. Federal ($2,048) ($5,2
State & local (1,338)
Foreign jurisdictions 4,529
$1,143 ($4,2
____________________________
rred Total
($27,670) ($30,965)
(2,360) (1,851)
(1,704) 1,753
($31,734) ($31,063)
($62,222) ($56,045)
(4,819) (4,649)
795 7,616
($66,246) ($53,078)
($5,262) ($7,310)
206 (1,132)
820 5,349
($4,236) ($3,093)
TEAM INC
10-K
03/19/2019
9. INCOME TAXES
Twelve Months Ended

December 31,
7/10/1905 7/9/1905
Domestic ($90,822) ($149,045)
Foreign (3,387) 11,512
($94,209) ($137,533)
____________________________
7/8/1905
($25,488)
9,830
($15,658)
TEAM INC
10-K
03/19/2019
9. INCOME TAXES
Twelve Months Ended

December 31,
7/10/1905
Pre-tax loss from continuing operations ($94,209)
Computed income taxes at statutory rate (19,784)
State income taxes, net of federal benefit (2,360)
Foreign tax rate differential (52)
Deferred taxes on investment in foreign (7,284)
subsidiaries
Non-deductible expenses 686
Foreign tax credits -
Other tax credits (1,995)
Deemed repatriation tax (1,751)
Goodwill impairment -
Dividend from foreign subsidiaries -
Valuation allowance 2,923
Rate change 81
Other (1,527)
Total benefit for income tax on continuing ($31,063)
operations
____________________________
7/9/1905 7/8/1905
($137,533) ($15,658)
(48,136) (5,481)
(4,709) (713)
(642) (707)
(17,079) 1,777
1,030 871
(17,445) (2,302)
(631) (1,033)
24,374 -
19,442 -
- 2,021
1,249 1,986
(17,360) -
6,829 488
($53,078) ($3,093)
TEAM INC
10-K
03/19/2019
9. INCOME TAXES
December 31,
7/10/1905
Deferred tax assets:
Accrued compensation and benefits $10,463
Receivables 3,096
Inventory 422
Stock options 1,101
Foreign currency translation and other -
equity adjustments
Tax credit carry forward 1,920
Net operating loss carry forwards 48,732
Other 5,925
Deferred tax assets 73,717
Less: Valuation allowance (10,549)
Deferred tax assets, net 63,168
Deferred tax liabilities:
Property, plant and equipment (22,429)
Goodwill and intangible costs (23,210)
Unremitted earnings of foreign subsidiaries (5,375)
Convertible debt (7,055)
Other (3,553)
Deferred tax liabilities (61,622)
Net deferred tax asset (liability) $1,546
____________________________
7/9/1905
$9,810
2,381
873
738
2,945
3,066
2,588
35,185
2,066
59,652
(6,479)
53,173
(20,918)
(27,762)
(13,795)
(3,622)
(677)
(66,774)
($13,601)
TEAM INC
10-K
03/19/2019
9. INCOME TAXES
Twelve Months Ended

December 31,
7/10/1905
Balance at beginning of year $1,159
Acquisition of Furmanite uncertain tax -
positions
Additions based on current year tax positions -
Additions based on tax positions related 1,478
to prior years
Reductions based on tax positions related (416)
to prior years
Settlements -
Balance at end of year $2,221
____________________________
7/9/1905 7/8/1905
$858 $539
- 660
- 464
301 96
- (564)
- (337)
$1,159 $858
TEAM INC
10-K
03/19/2019
10. LONG-TERM DEBT, LEASES, DERIVATIVES AND LETTERS OF CREDIT
December 31,
7/10/1905
Credit Facility $156,843

Convertible debt 1 195,184
Capital lease obligations 5,356
Total long-term debt and capital lease 357,383
obligations
Less: current portion of long-term debt 569
and capital lease obligations
Total long-term debt and capital lease $356,814
obligations, less current portion
____________________________
7/9/1905
$177,857
209,892
-
387,749
$387,749
TEAM INC
10-K
03/19/2019
10. LONG-TERM DEBT, LEASES, DERIVATIVES AND LETTERS OF CREDIT
December 31
7/11/1905 $-
7/12/1905 156,843
7/13/1905 -
7/14/1905 -
7/15/1905 230,000
Thereafter -
Total $386,843
____________________________
TEAM INC
10-K
03/19/2019
Accounting Treatment of the Notes
December 31,
7/10/1905
Liability component:
Principal $230,000
Unamortized issuance costs (5,834)
Unamortized discount (28,982)
Net carrying amount of the liability component 195,184
Embedded derivative liability 1 -
Total 2 $195,184
Equity component:
Carrying amount of the equity component, $13,912
net of issuance costs 3
____________________________
7/9/1905
$230,000
(6,820)
(33,882)
189,298
20,594
$209,892
$13,912
TEAM INC
10-K
03/19/2019
Debt with Conversion and Other OptionsEmbedded Derivatives
Twelve Months Ended

December 31,
7/10/1905 7/9/1
Coupon interest $11,500 $4,82

Amortization of debt discount and issuance 5,886 2,31
costs
Total interest expense on convertible $17,386 $7,13
senior notes
Effective interest rate 9.12 % 9.1
____________________________
7/9/1905
$4,823
2,310
$7,133
9.12 %
TEAM INC
10-K
03/19/2019
Derivatives and Hedging
Gain (Loss) Recognized in Other Comprehensive

Income (Loss)
Twelve Months Ended
December 31,
7/10/1905
Derivatives Classified as Hedging Instruments
Net investment hedge $658
Gain (Loss) Recognized in Income (Loss) 1

Twelve Months Ended
December 31,
7/10/1905
Derivatives Not Classified as Hedging
Instruments
Embedded derivative in convertible debt ($24,783)
____________________________
mprehensive Gain (Loss) Reclassified fr
Income (Loss) to Earnings
Twelve Months Ended
December 31,
7/9/1905 7/8/1905 7/10/1
($1,802) 481 $-
Loss) 1
7/9/1905 7/8/1905
$818 $-
classified from Other Comprehensive
to Earnings
Ended
7/10/1905 7/9/1905 7/8/1905
$- $-
TEAM INC
10-K
03/19/2019
Derivatives and Hedging
December 31, 2018
Classification
Derivatives Classified as Hedging Instruments

Net investment hedge Liability
Derivatives Not Classified as Hedging
Instruments
Embedded derivative in convertible debt Liability
____________________________
December 31, 2017
Balance Sheet Fair Classification

Location Value
Long-term debt ($3,904) Liability
Long-term debt $- Liability

Balance Sheet Fair
Location Value
Long-term debt ($3,246)
Long-term debt $20,594

TEAM INC
10-K
03/19/2019
Lease Obligations
Twelve Months Ended December 31,

Operating
7/11/1905 $23,315
7/12/1905 16,858
7/13/1905 12,577
7/14/1905 9,873
7/15/1905 7,846
Thereafter 23,224
Total minimum lease payments $93,693
Less amounts representing interest
Present value of future minimum lease payments
____________________________
Capital
$583
500
504
524
525
5,631
$8,267
(2,911)
$5,356
TEAM INC
10-K
03/19/2019
11. FAIR VALUE MEASUREMENTS
December 31, 2018

Quoted Prices
in Active Markets for
Identical Items
(Level 1)
Liabilities:
Contingent consideration 1 $-
Net investment hedge $-
Embedded derivative in convertible debt 2 $-
____________________________
Significant Significant Total
Other Unobservable
Observable Inputs (Level 3)
Inputs (Level 2)
$- $429 $429
($3,904) $- ($3,904)
$- $- $-
TEAM INC
10-K
03/19/2019
December 31, 2017

Quoted Prices in Active
Markets for
Identical Items
(Level 1)
Liabilities:
Contingent consideration 1 $-
Net investment hedge $-
Embedded derivative in convertible debt 2 $-
____________________________
Significant Significant Total
Other Unobservable
Observable Inputs (Level 3)
Inputs (Level 2)
$- $1,712 $1,712
($3,246) $- ($3,246)
$20,594 $- $20,594
TEAM INC
10-K
03/19/2019

7/10/1905 7/9/1905
Beginning balance $1,712 $3,739
Accretion of liability 39 222
Foreign currency effects (14) 203
Payment (1,106) (1,278)
Revaluation (202) (1,174)
Ending balance $429 $1,712
____________________________
7/9/1905
TEAM INC
10-K
03/19/2019
12. SHARE-BASED COMPENSATION
Twelve Months Ended

December 31, 2018
No. of Stock Weighted
Units Average
Fair Value
(in thousands)
Stock and stock units, beginning of year 854 $21.42
Changes during the year:
Granted 370 $18.09
Vested and settled (291) $24.76
Cancelled (77) $21.37
Stock and stock units, end of year 856 $18.79
____________________________
hted
age
Value
$21.42
$18.09
$24.76
$21.37
$18.79
TEAM INC
10-K
03/19/2019
Twelve Months Ended

December 31, 2018
Performance Units Subject to Market Conditions

Units 1 Average
Fair Value
(in thousands)
Performance stock units, beginning of 45 $17.66
period
Changes during the period:
Granted 465 $14.24
Vested and settled - $-
Cancelled (15) $16.78
Performance stock units, end of period 495 $14.47
____________________________
ions Performance Units Not Subject to Market
Conditions
Units 1 Average
Fair Value
(in thousands)
84 $25.76
115 $15.00
(15) $13.45
(39) $27.95
145 $17.88
TEAM INC
10-K
03/19/2019
Twelve Months Ended

December 31, 2018
No. of Weighted
Options Average
Exercise Price
(in thousands)
Shares under option, beginning of year 79 $31.94
Changes during the year:
Granted - $-
Exercised - $-
Cancelled - $-
Expired (27) $30.75
Shares under option, end of year 52 $32.56
Exercisable at end of year 52 $32.56
____________________________
TEAM INC
10-K
03/19/2019
Defined benefit plans.
Twelve Months Ended

December 31,
7/10/1905
Service cost $77
Interest cost 2,303
Expected return on plan assets (3,720)
Amortization of net actuarial (gain) loss (78)
Net periodic pension cost (credit) ($1,418)
____________________________
7/9/1905 2016 1
$90 79
2,438 2,504
(3,110) (2,577)
71 -
($511) 6
TEAM INC
10-K
03/19/2019
December 31,
7/10/1905 7/9/1905
Discount rate 2.80 % 2.50 %
Rate of compensation increase 1 Not applica Not applica
Inflation 3.20 % 3.10 %
____________________________
TEAM INC
10-K
03/19/2019
Twelve Months Ended

December 31,
7/10/1905 7/9/1905
Discount rate 2.50 % 2.70 %
Expected long-term return on plan assets 4.70 % 4.50 %
Rate of compensation increase 1 Not applica Not applica
Inflation 3.10 % 3.30 %
____________________________
TEAM INC
10-K
03/19/2019

7/10/1905
Projected benefit obligation:
Beginning of year $96,875
Service cost 77
Interest cost 2,303
Actuarial (gain) loss (4,347)
Benefits paid (4,539)
Prior service cost 669
Disposal of Norwegian Plan (1,075)
and other
End of year 84,559
Fair value of plan assets:
Beginning of year 81,899
Actual gain (loss) on plan assets (462)
Employer contributions 2,404
Benefits paid (4,539)
Disposal of Norwegian Plan (983)
and other
End of year 73,619
Excess projected obligation under (over) ($10,940)
fair value of plan assets at end of year
Amounts recognized in accumulated other
comprehensive loss:
Net actuarial loss ($7,190)
Prior service cost (669)
Total ($7,859)
____________________________
7/9/1905
$89,206
90
2,438
890
(4,187)
-
-
8,438
96,875
67,967
7,383
4,350
(4,187)
-
6,386
81,899
($14,976)
($7,221)
-
($7,221)
TEAM INC
10-K
03/19/2019
7/11/1905 $3,403
7/12/1905 3,536
7/13/1905 3,752
7/14/1905 3,926
7/15/1905 3,811
2024-2028 22,475
Total $40,903
____________________________
TEAM INC
10-K
03/19/2019
December 31, 2018

Asset Category Total
Cash $1,119
Equity securities:
Diversified growth fund (h) 12,330
Global equity fund (o) 1,835
Fixed income securities:
U.K. government fixed income securities 18,048
(k)
U.K. government index-linked securities 14,245
(l)
Global absolute return bond fund (m) 18,570
Corporate bonds (n) 7,472
Total $73,619
____________________________
Quoted Prices in Significant Significant
Active Markets Observable Unobservable
for Inputs Inputs
Identical Assets (Level 2) (a) (Level 3) (a)
(Level 1)
$1,119 $- $-
- 12,330 -
- 1,835 -
- 18,048 -
- 14,245 -
- 18,570 -
- 7,472 -
$1,119 $72,500 $-
ificant
servable
ts
el 3) (a)
TEAM INC
10-K
03/19/2019
December 31, 2017

Asset Category Total
Cash $651
Equity securities:
U.K. equity (b) 17,809
U.S. equity index (c) 4,370
European equity index (d) 4,378
Pacific rim equity index (e) 3,506
Japanese equity index (f) 2,733
Emerging markets equity index (g) 2,785
Diversified growth fund (h) 17,296
Global absolute return fund (i) 6,534
Fixed income securities:
Cash fund (j) 5,315
U.K. government fixed income securities 6,494
(k)
U.K. government index-linked securities 8,934
(l)
Total $80,805
____________________________
Quoted Prices in Significant Significant
Active Markets Observable Unobservable
for Inputs Inputs
Identical Assets (Level 2) (a) (Level 3) (a)
(Level 1)
$651 $- $-
- 17,809 -
- 4,370 -
- 4,378 -
- 3,506 -
- 2,733 -
- 2,785 -
- 17,296 -
- 6,534 -
- 5,315 -
- 6,494 -
- 8,934 -
$651 $80,154 $-
ificant
servable
ts
el 3) (a)
TEAM INC
10-K
03/19/2019
Asset Allocations
7/10/1905 7/9/1905
Equity securities and diversified growth 19.20 % 73.50 %
funds 1
Debt securities 2 79.20 % 25.70 %
Other 1.50 % 0.80 %
Total 100 % 100 %
____________________________
Target Asset Allocations
7/10/1905 7/9/1905
27.50 % 65.00 %
72.50 % 35.00 %
- % - %
100 % 100 %
TEAM INC
10-K
03/19/2019
Segment Reporting
Twelve Months Ended

December 31,
7/10/1905 7/9/1905
Revenues:
IHT $617,378 $588,441
MS 532,365 529,973
Total $1,246,929 $1,200,211
____________________________
7/8/1905
$589,478
539,627
67,591
$1,196,696
TEAM INC
10-K
03/19/2019
Segment Reporting
Twelve Months Ended

December 31,
7/10/1905
IHT 1 $37,329 $11,1
MS 1 6,323 (33,99
Total ($38,961) ($115,11
____________________________
7/9/1905 7/8/1905
$11,128 $43,367
(33,993) 27,283
12,337 4,780
(104,582) (78,548)
($115,110) ($3,118)
TEAM INC
10-K
03/19/2019
Segment Reporting
Twelve Months Ended

December 31,
7/10/1905
Capital expenditures 1 :
IHT $7,643 $10,5
MS 11,141 17,7
Corporate and shared support services 3,621 5,1
Total $25,931 $36,7
____________________________
7/9/1905 7/8/1905
$10,505 $8,803
17,791 15,077
3,316 2,007
5,186 19,956
$36,798 $45,843
TEAM INC
10-K
03/19/2019
Segment Reporting
Twelve Months Ended

December 31,
7/10/1905
Depreciation and amortization:
IHT $18,810 $19,2
MS 36,177 23,4
Corporate and shared support services 5,590 5,0
Total $64,862 $52,1
____________________________
7/9/1905 7/8/1905
$19,279 $19,853
23,412 21,387
4,423 5,323
5,029 2,110
$52,143 $48,673
TEAM INC
10-K
03/19/2019
Segment Reporting
Total Total
Revenues 1 Long-lived Assets
Twelve months ended December 31, 2018
United States $908,382 $298,5
Canada 139,900 4,1
Europe 126,142 20,2
Other foreign countries 72,505 3,2
Total $1,246,929 $326,1
Canada 134,256 5,3
Europe 119,603 22,4
Total $1,200,211 $363,3
Canada 128,122 5,9
Europe 108,720 20,2
Total $1,196,696 $379,2
____________________________
l
-lived Assets 2
$298,567
4,165
20,224
3,210
$326,166
$330,909
5,377
22,480
4,614
$363,380
$348,123
5,901
20,249
4,962
$379,235
TEAM INC
10-K
03/19/2019
16. DISCONTINUED OPERATIONS
Twelve Months Ended

December 31, 2016
Revenues $46,771
Operating expenses 43,081
Gross margin 3,690
Selling, general and administrative expenses 1,939
Gain on disposal 7
Income from discontinued operations, 1,758
before income tax
Less: Provision for income taxes 1,869
Loss from discontinued operations, net ($111)
of income tax
____________________________
TEAM INC
10-K
03/19/2019
17. RESTRUCTURING AND OTHER RELATED CHARGES

7/10/1905
OneTEAM Program
Severance and related costs
IHT $2,995 $-
MS 2,514 -
Quest Integrity 418 -
Corporate and shared support services 800 -
Subtotal 6,727 -
2017 Cost Savings Initiative

Severance and related costs
IHT -
MS - 1,
Quest Integrity -
Corporate and shared support services -
Subtotal - 3,
Furmanite Belgium and Netherlands Exit

Severance and related costs (credits)
MS - (1
Disposal (gain)/impairment loss
MS - (1,0
Subtotal - (1,2
Grand total $6,727 $2,
____________________________
7/9/1905 7/8/1905
$-
-
-
-
-
966 -
1,622 -
428 -
864 -
3,880 -
(173) 4,862
(1,056) 651
(1,229) 5,513
$2,651 $5,513
TEAM INC
10-K
03/19/2019
OneTEAM Program.
Twelve Months Ended

December 31, 2018
Balance, beginning of period $-
Charges 6,727
Payments (4,444)
Balance, end of period $2,283
____________________________
TEAM INC
10-K
03/19/2019
Furmanite Belgium and Netherlands Exit.
Twelve Months Ended

December 31, 2017
Balance, beginning of period $4,846
Charges (credits), net (173)
Payments (3,144)
Disposal (1,601)
Foreign currency adjustments 72
Balance, end of period $-
____________________________
TEAM INC
10-K
03/19/2019
18. ACCUMULATED OTHER COMPREHENSIVE LOSS
Twelve Months Ended

December 31, 2018
Foreign Foreign
Currency Currency
Translation Hedge
Adjustments
Balance at beginning of year ($21,366) $3,24
Other comprehensive income (loss) (9,241) 65
Adoption of new accounting principle - -
Balance at end of year ($30,607) $3,90
____________________________
ign Defined benefit pension plans Tax
ency Provision
e
$3,246 ($7,221) $5,545

658 (638) (3,045)
- (2,330)
$3,904 ($7,859) $170
Twelve Months Ended
December 31, 2017
Total Foreign Foreign
Currency Currency
Translation Hedge
Adjustments
($19,796) ($31,973) $5,
(12,266) 10,607 (1,8
(2,330) - -
($34,392) ($21,366) $3,
ign Defined benefit pension plans Tax
ency Provision
e
$5,048 ($10,518) $8,443

(1,802) 3,297 (2,898)
- -
$3,246 ($7,221) $5,545
Total
($29,000)
9,204
-
($19,796)
TEAM INC
10-K
03/19/2019
18. ACCUMULATED OTHER COMPREHENSIVE LOSS
Gross
Amount
Foreign currency translation adjustments ($9,241)
Foreign currency hedge 658
Defined benefit pension plans (638)
Total ($9,221)
____________________________
7/10/1905
Tax Net Gross
Effect Amount Amount
($2,923) ($12,164) $10,607
(162) 496 (1,802)
40 (598) 3,297
($3,045) ($12,266) $12,102
7/9/1905
Tax Net
Effect Amount
($2,919) $7,688
688 (1,114)
(667) 2,630
($2,898) $9,204
7/8/1
Gross Tax Net
Amount Effect Amount
($3,849) $1,351 ($2,498)
481 (181) 300
(10,518) 2,090 (8,428)
($13,886) $3,260 ($10,626)
7/8/1905
TEAM INC
10-K
03/19/2019
20. QUARTERLY FINANCIAL DATA (Unaudited)

First
Quarter
Revenues $302,385
Gross margin $75,534
Operating income (loss) ($14,125)
Income (loss) from continuing operations 1 ($12,264)
Net income (loss) 1 ($12,264)
Basic earnings (loss) per share:
Continuing operations 1 ($0.41)
Net income (loss) 1 ($0.41)
Diluted earnings (loss) per share:
____________________________
Second Third Fourth
Quarter Quarter Quarter
$343,889 $290,856 $309,799
$97,182 $70,139 $85,401
$1,799 ($19,694) ($6,941)
($31,341) ($23,526) $3,985
($31,341) ($23,526) $3,985
($1.04) ($0.78) $0.13

($1.04) ($0.78) $0.13
($1.04) ($0.78) $0.13

($1.04) ($0.78) $0.13
Total
Year
$1,246,929
$328,256
($38,961)
($63,146)
($63,146)
($2.10)
($2.10)
($2.10)
($2.10)
TEAM INC
10-K
03/19/2019
20. QUARTERLY FINANCIAL DATA (Unaudited)

First
Quarter
Revenues $286,554
Gross margin $74,804
Operating loss 2 ($12,088)
Income (loss) from continuing operations 1 ($9,508)
Net income (loss) 1 ($9,508)
____________________________
Second Third Fourth
Quarter Quarter Quarter
$312,256 $285,067 $316,334
$84,643 $68,941 $81,611
($6,693) ($94,116) ($2,213)
($11,086) ($83,528) $19,667
($11,086) ($83,528) $19,667
($0.37) ($2.80) $0.66

($0.37) ($2.80) $0.66
($0.37) ($2.80) $0.66

($0.37) ($2.80) $0.66
Total
Year
$1,200,211
$309,999
($115,110)
($84,455)
($84,455)
($2.83)
($2.83)
($2.83)
($2.83)
TEAM INC
10-K
03/19/2019
Balance Sheet
Years Ended December 31,

7/10/1905
Statements of operations data:
Revenues $1,246,929
Operating income (loss) ($38,961)
Income (loss) from continuing operations ($63,146)
Net income (loss) attributable to Team ($63,146)
shareholders
Net income (loss) ($2.10)
Net income (loss) ($2.10)
Weighted-average shares outstanding
Basic 30,031
Diluted 30,031
Balance sheet data:
Total assets $977,821
Long-term debt and other long-term liabilities $380,770
Stockholders? equity $457,100
Working capital $215,005
Noncontrolling interest $-
Other financial data:
Depreciation and amortization $64,862
Goodwill impairment loss $-
Share-based compensation $12,256
Capital expenditures 4 $25,931
____________________________
Seven Months Ended December
2017 (1) 2016 (2) 2015 (3)
$1,200,211 $1,196,696 $571,718

($115,110) ($3,118) $19,162
($84,455) ($12,565) $8,878
($84,455) ($12,676) $8,878
($2.83) ($0.45) $0.43

($2.83) ($0.45) $0.43
($2.83) ($0.45) $0.41

($2.83) ($0.45) $0.41
29,849 28,095 20,852

29,849 28,095 21,425
$1,055,835 $1,147,418 $798,991

$430,877 $464,060 $368,685
$477,174 $535,637 $338,146
$249,276 $253,636 $222,399
$- $- $-
$52,143 $48,673 $19,426

$75,241 $- $-
$7,876 $7,313 $3,469
$36,798 $45,843 $25,802
nded December 31 Years Ended May 31,
7/7/1905 7/6/1905
$842,047 $749,527
$68,465 $53,421
$40,497 $30,149
$40,070 $29,855
$1.95 $1.46
$1.95 $1.46
$1.85 $1.40
$1.85 $1.40
20,500 20,439
21,651 21,285
$523,833 $484,941
$97,234 $92,753
$335,375 $317,045
$197,472 $173,671
$6,034 $5,678
$22,787 $21,468
$- $-
$4,838 $4,239
$28,769 $33,016
TEAM INC
10-K
03/19/2019
Acceptance
TEAM, INC.
By: ______________________________
Name: ____________________________
Title: ____________________________
GRANTEE
By: ______________________________
Printed Name: ______________________
Date Signed: _______________________
____________________________
TEAM INC
10-K
03/19/2019
SUBSIDIARIES OF REGISTRANT
COMPANY
Team, Inc.
TISI Pipelines, Inc.
TQ Acquisition, Inc.
Quest Integrity Group, LLC
Quest Integrity CAN Ltd.
Quest Integrity NZL Limited
Quest Integrity MYS Sdn Bhd
Quest Integrity AUS Pty Limited
Quest Integrity EU Holdings B.V.
Quest Integrity NLD B.V.
Quest Integrity Saudi Arabia Co. LTD
Quest Integrity Middle East FZ-LLC
Quest Integrity Deutschland GmbH
Quest Integrity USA, LLC
Quest Integrity MEX S.A. de C.V.
Team Industrial Services, Inc.
Global Ascent, LLC
TCI Services Holdings, LLC
TCI Services, LLC
Tank Consultants, LLC
Tank Consultants Mechanical Services,
LLC
Team Industrial Services International,
Inc.
Team Mexico Holdings, LLC
Team Industrial Services Latin America,
S. de R.L. de C.V.
TISI Acquisition Inc.
TISI Canada Inc.
TISI VI, LLC
Team Industrial Services Asia Private
Ltd.
Team Industrial Services Trinidad, Ltd.
T.I.S.I. Trinidad Limited
Team Industrial Services Europe B.V.
Team Industrial Services Netherlands
B.V.
Teaminc Europe B.V.
Team Industrial Services Belgium BVBA
Team Industrial Services (UK) Limited
Team Valve Repair Services B.V.
Team Industrial Services Deutschland
GmbH
Team Industrial Services Malaysia Sdn
Bhd
Team Industrial Services (UK) Holding
Limited
TeamFurmanite Valve and Rotating Services
Limited
TISI do Brasil-Servicos Industriais Ltda.
DK Valve & Supply, LLC
Team Technical School, LLC
Rocket Acquisition, LLC
Team Qualspec, LLC
Qualspec LLC
____________________________
JURISDICTION / STATE OF INCORPORATION
Delaware
Delaware
Texas
Delaware
Canada
New Zealand
Malaysia
Australia
Netherlands
Netherlands
Saudi Arabia
United Arab Emirates
Germany
Texas
Mexico
Texas
California
Delaware
Oklahoma
Oklahoma
Oklahoma
Delaware
Texas
Mexico
Canada
Canada
USVI
Singapore
Trinidad, West Indies

Trinidad, West Indies
Netherlands
Netherlands
Netherlands
Belgium
United Kingdom
Netherlands
Germany
Malaysia
United Kingdom
United Kingdom
Brazil
California
Texas
Delaware
Delaware
Delaware
TEAM INC
10-K
03/19/2019
SUBSIDIARIES OF REGISTRANT
COMPANY
Quantapoint, LLC
A&M Beheer, B.V.
Turbinate International, B.V.
RETESO International, B.V.
Quality Inspection Services B.V.
Quality Inspection Services BVBA
Threshold Inspection & Application Training
Europe B.V.
Furmanite, LLC
Xanser Services, LLC
Furmanite Germany, LLC
Furmanite GmbH
Furmanite Worldwide, LLC
Xtria, LLC
Kaneb Financial, LLC
Aggressive Equipment Company, LLC
Xanser Investment, LLC
Furmanite Offshore Services, Inc.
Self Leveling Machines, LLC
Furmanite International Finance Limited
Furmanite America, LLC
Advanced Integrity Solutions, Inc.
Furmanite Canada Corp.
Furmanite Louisiana, LLC
Furmanite Aruba II, N.V.
Furmanite B.V.
Furmanite GSG BVBA
Furmanite AB
Furmanite A/S
Furmanite Limited
Furmanite 1986
Team Industrial Services Inspection Limited
TeamFurmanite Ltd.
Furmanite West Africa Ltd.
Furmanite Middle East S.P.C.
Aggressive Equipment Company Ltd.
Furmanite Kazakhstan LLP
Furmanite SAS
Furmanite Malaysia LLC
Furmanite Australia Pty. Ltd.
Furmanite Holding B.V.
Furmanite NZ Limited
Furmanite Mechanical Technology Services
Co., Ltd.
____________________________
JURISDICTION / STATE OF INCORPORATION
Delaware
Netherlands
Netherlands
Netherlands
Netherlands
Belgium
Netherlands
Delaware
Delaware
Delaware
Germany
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Texas
United Kingdom
Virginia
Texas
Canada
Delaware
Aruba
Netherlands
Belgium
Sweden
Denmark
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Nigeria
Bahrain
United Kingdom
Kazakhstan
France
Delaware
Australia
Netherlands
New Zealand
China
TEAM INC
10-K
03/19/2019
Exhibit 31.1
/ S / A MERINO G ATTI
Amerino Gatti
____________________________
TEAM INC
10-K
03/19/2019
Exhibit 31.2
Susan M. Ball
Executive Vice President and Chief Financial
Officer
____________________________
TEAM INC
10-K
03/19/2019
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
/ S / A MERINO G ATTI
Amerino Gatti
March 19, 2019
____________________________
TEAM INC
10-K
03/19/2019
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Susan M. Ball
Executive Vice President and Chief Financial
Officer
March 19, 2019
____________________________

Team Industrial Annual Report 2018

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Team Industrial Annual Report 2018

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TEAM INC

13131 Dairy Ashford, Suite 600, Sugar Land, 77,478

Securities registered pursuant to Section 12(g) of the Act: None

Large accelerated filer ? Accelerated filer ?

SELECTED FINANCIAL DATA

ITEM 5. MARKET FOR REGISTRANT?S COMMON EQUITY, 15

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE 19

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 20

FINANCIAL TABLE OF CONTENTS 24

5/13 5/14 5/15

(a) 1 Consolidated Financial Statements filed

3.10 Amended and Restated Certificate of Incorporation

3.20 Certificate of Amendment of Amended and

3.30 Amended and Restated Bylaws of the Company

4.10 Certificate representing shares of common

4.20 Indenture, dated July 31, 2017, between

10.1? Team, Inc. 2004 Restricted Stock Option

10.2? Team, Inc. 2006 Stock Incentive Plan (as

10.3? Form of Team, Inc. Stock Unit Award Agreement

10.4? Furmanite Corporation 1994 Stock Incentive

10.5? Team, Inc. 2016 Equity Incentive Plan (incorporated

10.6? Team, Inc. 2018 Equity Incentive Plan (filed

10.7? Form of Stock Unit Agreement (filed as Exhibit

10.8? Form of Performance-Based Stock Unit Agreement

10.9? Form of Performance Share Award Agreement

10.10? Form of Performance Award Agreement (filed

10.11? Form of Restricted Stock Unit Award Agreement

10.29 Settlement Agreement, by and among Team,

10.30 Confidentiality Agreement by and among

10.31 ? Form of Indemnification Agreement (filed

10.32 ? Transition, Severance, and Release Agreement

10.33 ? Offer Letter, dated July 1, 2018, between

10.34 ? Offer Letter dated November 26, 2018, by

10.35 ? Transition, Severance, and Release Agreement

10.36 ? Consulting Agreement dated November 26,

21 Subsidiaries of the Company.

23.10 Consent of Independent Registered Public

31.10 Certifications pursuant to Section 302

31.20 Certifications pursuant to Section 302

32.10 Certifications pursuant to Section 906

32.20 Certifications pursuant to Section 906

101.INS XBRL Instance Document.

101.SCH XBRL Taxonomy Schema Document.

101.CAL XBRL Calculation Linkbase Document.

101.DEF XBRL Definition Linkbase Document.

101.LAB XBRL Label Linkbase Document.

101.PRE XBRL Presentation Linkbase Document.

/S/ A MERINO G ATTI

/S/ A MERINO G ATTI

Executive Vice President, Chief Financial March 19, 2019

Director March 19, 2019

Director March 19, 2019

Director March 19, 2019

Director March 19, 2019

Director March 19, 2019

Director March 19, 2019

Chairman of the Board March 19, 2019

Director March 19, 2019

FINANCIAL TABLE OF CONTENTS

Management's Discussion and Analysis 25

Twelve Months Ended

Revenues by business segment:

Operating income (loss):