Team (TISI)

Principles of Consolidation

The consolidated financial statements of the Company include the financial statements of the Company and majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Minority interest is recognized for the portion not owned by the Company.

Discontinued Operations

On November 30, 2005, the Company sold its Equipment Sales and Rental business (Climax Portable Machine Tools, Inc., or “Climax”) for cash (see note 2). With respect to accounts associated with Climax, the balance sheet and cash flow amounts are reclassified from their historical presentation to assets and liabilities of discontinued operations and the operating results of Climax are presented as discontinued operations. Beginning in the current quarter, the Company has separately disclosed the operating, investing and financing portions of the cash flows attributable to its discontinued operation, which in the November 30, 2005 period was reported on a combined basis as a single amount.

Principles of Consolidation

The consolidated financial statements of the Company include the financial statements of the Company and majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Minority interest is recognized for the portion not owned by the Company.

Discontinued Operations

On November 30, 2005, the Company sold its Equipment Sales and Rental business (Climax Portable Machine Tools, Inc., or “Climax”) for cash (see note 2). With respect to accounts associated with Climax, the balance sheet and cash flow amounts are reclassified from their historical presentation to assets and liabilities of discontinued operations and the operating results of Climax are presented as discontinued operations.

Principles of Consolidation

The consolidated financial statements of the Company include the financial statements of the Company and majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Minority interest is recognized for the portion not owned by the Company. Investments in unconsolidated companies are recorded on an equity method. Equity in earnings of unconsolidated companies are included in other selling, general, and administrative expenses in the consolidated statements of operations.

Principles of Consolidation

The consolidated financial statements of the Company include the financial statements of the Company and majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Minority interest is recognized for the portion not owned by the Company. Investments in unconsolidated companies are recorded on an equity method. Equity in earnings of unconsolidated companies are included in other selling, general, and administrative expenses in the consolidated statements of operations.

Principles of Consolidation

The consolidated financial statements of Team, Inc. (the “Company”) include the financial statements of the Company and its subsidiaries. All significant intercompany transactions have been eliminated.