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Operating Segment and Related Information (Tables)

3 Months Ended

Mar. 31, 2020

Schedules of Concentration of Risk, by Risk Factor

As a result of the sale of GMSL, and in accordance with ASC 280, the Company no longer considers the results of operations and Balance Sheets of GMH and its subsidiaries as a separate segment. Formerly the Marine Services segment, these entities and the investment in HMN have been reclassified to the Other segment. In addition, as GMSL is a discontinued operation as of March 31, 2020, all operating results of GMSL have been reclassified to Discontinued operations. This has been reflected in the tables below for both the current and historical periods presented.

The Company's revenue concentrations of 10% and greater are as follows:

Three Months Ended March 31,

Segment

2020

2019

Customer A

Telecommunications

11.5%

Summary of Company's Geographic and Operating Segments

Summary information with respect to the Company’s operating segments is as follows (in millions):


	Three Months Ended March 31,
	2020		2019
Net revenue
Construction	$	176.5	$	192.1
Energy	10.4		5.1
Telecommunications	186.4		155.5
Insurance	63.8		88.8

Broadcasting	10.1		9.8


Eliminations ^(*)	(2.4)		(2.3)
Total net revenue	$	444.8	$	449.0

^(*)The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the three months ended March 31, 2020 and 2019 which are related to entities under common control which are eliminated or are reclassified in consolidation.


	Three Months Ended March 31,
	2020		2019
Income (loss) from operations
Construction	$	2.6	$	5.7
Energy	1.7		(0.4)
Telecommunications	0.1		0.6
Insurance	(12.6)		34.4
Life Sciences	(3.2)		(1.8)
Broadcasting	(2.9)		(3.3)
Other	(1.0)		(0.1)
Non-operating Corporate	(9.1)		(7.2)
Eliminations^(*)	(2.4)		(2.3)
Total income (loss) from operations	$	(26.8)	$	25.6

^(*) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the three months ended March 31, 2020 and 2019 which are related to transactions between entities under common control which are eliminated or are reclassified in consolidation.

A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in millions):


	Three Months Ended March 31,
	2020		2019
Income (loss) from operations	$	(26.8)	$	25.6
Interest expense	(21.3)		(18.8)

Loss on early extinguishment or restructuring of debt	(5.8)		—


Loss from equity investees	(2.5)		(5.9)

Other income, net	2.8		3.4
(Loss) income from continuing operations	(53.6)		4.3
Income tax benefit (expense)	12.6		(4.0)
(Loss) income from continuing operations	(41.0)		0.3
Loss from discontinued operations (including loss on disposal of $39.3 million)	(60.0)		(6.6)
Net loss	(101.0)		(6.3)
Net loss attributable to noncontrolling interest and redeemable noncontrolling interest	17.9		3.5
Net loss attributable to HC2 Holdings, Inc.	(83.1)		(2.8)
Less: Preferred dividends, deemed dividends and repurchase gains	0.4		(1.2)
Net loss attributable to common stock and participating preferred stockholders	$	(83.5)	$	(1.6)


	Three Months Ended March 31,
	2020		2019
Depreciation and Amortization
Construction	$	2.6	$	3.9
Energy	2.1		1.4
Telecommunications	0.1		0.1
Insurance ^(*)	(5.9)		(6.5)

Broadcasting	1.7		1.4


Total	$	0.6	$	0.3

^(*) Balance includes amortization of negative VOBA, which increases net income.


	Three Months Ended March 31,
	2020		2019
Capital Expenditures ^(*)
Construction	$	2.3	$	2.6
Energy	1.0		0.1

Insurance	0.1		0.2

Broadcasting	2.7		0.4


Total	$	6.1	$	3.3

^(*)The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations.

Segment Reporting for Long-term investments, Property and Equipment - Net and Assets


	March 31,		December 31,
	2020		2019
Investments
Construction	$	0.9	$	0.9
Insurance	4,090.0		4,423.0


Life Sciences	21.0		22.0

Other	42.9		43.1

Eliminations	(98.0)		(96.9)
Total	$	4,056.8	$	4,392.1


	March 31,		December 31,
	2020		2019
Total Assets
Construction	$	557.3	$	530.4

Energy	144.1		142.8
Telecommunications	123.4		89.3
Insurance	5,264.4		5,611.9
Life Sciences	24.8		28.4
Broadcasting	257.7		257.9
Other	44.2		366.3
Non-operating Corporate	20.7		27.2
Eliminations	(97.5)		(95.9)
Total	$	6,339.1	$	6,958.3