Operating Segment and Related Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Operating Segment and Related Information

17. Operating Segment and Related Information

The Company currently has one primary reportable geographic segment - United States. The Company has four reportable operating segments, plus our Other segment, based on management’s organization of the enterprise - Infrastructure, Life Sciences, Spectrum, Insurance, and Other. We also have included a Non-operating Corporate segment. All inter-segment revenues are eliminated.

As a result of the sale of GMSL, ICS, and Beyond6, and in accordance with ASC 280, the Company no longer considers the results of operations and balance sheets of these entities and related subsidiaries as separate segments. Formerly part of the Marine Services, Telecommunications, and Clean Energy segments, these entities and the investment in HMN have been reclassified to the Other segment. In addition, as GMSL, ICS, Beyond6, and CIG are discontinued operations, all operating results of these entities have been reclassified to discontinued operations. This has been reflected in the tables below for both the current and historical periods presented.

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenue
Infrastructure	$	232.0	$	172.3	$	393.3	$	348.8
Life Sciences	1.2		—		1.2		—
Spectrum	10.6		9.5		21.1		19.6
Total revenue	$	243.8	$	181.8	$	415.6	$	368.4

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Income (loss) from operations
Infrastructure	$	2.2	$	4.5	$	4.4	$	7.1
Life Sciences	(4.5)		(3.5)		(9.3)		(6.7)
Spectrum	1.4		(1.2)		0.2		(4.1)
Other	(0.2)		(0.7)		(0.6)		(1.7)
Non-operating Corporate	(6.6)		(8.0)		(13.3)		(17.1)
Total loss from operations	$	(7.7)	$	(8.9)	$	(18.6)	$	(22.5)

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Loss from operations	$	(7.7)	$	(8.9)	$	(18.6)	$	(22.5)
Interest expense	(12.4)		(19.1)		(33.8)		(38.3)
Loss on early extinguishment or restructuring of debt	(1.6)		(3.4)		(12.4)		(9.2)
Income (loss) from equity investees	0.2		(0.2)		(1.9)		(2.7)
Other income	0.4		64.6		3.8		66.1
(Loss) income from continuing operations before income taxes	(21.1)		33.0		(62.9)		(6.6)
Income tax expense	(2.6)		(12.0)		(3.7)		(2.3)
(Loss) income from continuing operations	(23.7)		21.0		(66.6)		(8.9)
(Loss) income from discontinued operations (including gain on disposal of $40.4 million and loss on disposal of $39.3 million for the six months ended June 30, 2021 and 2020, respectively)	(1.5)		7.5		50.4		(63.6)
Net (loss) income	(25.2)		28.5		(16.2)		(72.5)
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest	1.7		(15.4)		5.3		2.5
Net (loss) income attributable to HC2 Holdings, Inc.	(23.5)		13.1		(10.9)		(70.0)
Less: Preferred dividends and deemed dividends from conversions	0.2		0.4		0.6		0.8
Net (loss) income attributable to common stock and participating preferred stockholders	$	(23.7)	$	12.7	$	(11.5)	$	(70.8)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Depreciation and Amortization
Infrastructure	$	3.3	$	2.7	$	5.7	$	5.3
Life Sciences	0.1		0.1		0.1		0.1
Spectrum	1.4		1.7		2.9		3.4
Total	4.8		4.5		8.7		8.8
Depreciation expense recognized within cost of revenue	2.8		2.3		5.0		4.6
Total depreciation and amortization	$	7.6	$	6.8	$	13.7	$	13.4

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Capital Expenditures (*)
Infrastructure	$	3.9	$	1.1	$	5.5	$	3.4
Life Sciences	0.3		0.1		0.5		0.1
Spectrum	0.6		3.7		2.0		6.4
Non-operating Corporate	—		0.1		—		0.1
Total	$	4.8	$	5.0	$	8.0	$	10.0

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

	June 30, 2021		December 31, 2020
Investments
Infrastructure	$	0.9	$	0.9
Life Sciences	15.1		18.4
Other	37.1		36.1
Total	$	53.1	$	55.4

	June 30, 2021		December 31, 2020
Total Assets
Infrastructure	$	858.9	$	494.8
Life Sciences	20.4		21.4
Spectrum	206.0		213.6
Insurance	5,849.0		5,854.0
Other	40.8		167.3
Non-operating Corporate	4.2		30.1
Eliminations	(43.4)		(38.4)
Total	$	6,935.9	$	6,742.8