Note 18—Reportable Segments

Through the end of the year 2016, the Company segregated its business into three reportable segments: the Energy segment, the East Construction Services segment and the West Construction Services segment. In the first quarter 2017, the Company changed its reportable segments in connection with a realignment of the Company’s internal organization and management structure. The segment changes during the quarter reflect the focus of our CODM on the range of services we provide to our end user markets. Our CODM regularly reviews the Company’s operating and financial performance based on these segments.

The current reportable segments include the Power segment, the Pipeline segment, the Utilities segment, and the Civil segment. Segment information for prior periods have been restated to conform to the new segment presentation.

Driving the new end-user focused segments are differences in the nature of the services provided; the type or class of customer using the segment’s services; the method used by the segment to provide the services; and the regulatory environment of its customers.

Each of the Company’s reportable segments are comprised of similar business units that specialize in services unique to the segment. The reportable segments are managed separately because each serves different types of customers, use different methods to obtain services, and the nature of the regulatory environment are different for each reportable segment.

The classification of revenues and gross profit for segment reporting purposes can at times require judgment on the part of management. Our segments may perform services across industries or perform joint services for customers in multiple industries. To determine reportable segment gross profit, certain allocations, including allocations of shared and indirect costs, such as facility costs, equipment costs and indirect operating expenses were made.

The following is a brief description of the reportable segments:

The Power segment operates throughout the United States and specializes in a range of services that include full EPC project delivery, turnkey construction, retrofits, upgrades, repairs, outages, and maintenance for entities in the petroleum, petrochemical, water, and other industries.

The Pipeline segment operates throughout the United States and specializes in a range of services, including pipeline construction, pipeline maintenance, pipeline facility work, compressor stations, pump stations, metering facilities, and other pipeline related services for entities in the petroleum and petrochemical industries.

The Utilities segment operates primarily in California and the Midwest and Southeast regions of the United States and specializes in a range of services, including utility line installation and maintenance, gas and electric distribution, streetlight construction, substation work, and fiber optic cable installation.

The Civil segment operates primarily in the Southeastern and Gulf Coast regions of the United States and specializes in highway and bridge construction, airport runway and taxiway construction, demolition, heavy earthwork, soil stabilization, mass excavation, and drainage projects.

All intersegment revenues and gross profit, which were immaterial, have been eliminated in the following tables.

Segment Revenues

Revenue by segment for the three and nine months ended September 30, 2017 and 2016 were as follows:


	For the three months ended September 30,
	2017			2016
			% of			% of
			Total			Total
Segment	Revenue		Revenue	Revenue		Revenue
Power	$	154,178	25.3%	$	101,811	20.0%
Pipeline		84,357	13.9%		106,042	20.9%
Utilities		246,524	40.5%		186,985	36.8%
Civil		123,252	20.3%		112,990	22.3%
Total	$	608,311	100.0%	$	507,828	100.0%


	For the nine months ended September 30,
	2017			2016
			% of			% of
			Total			Total
Segment	Revenue		Revenue	Revenue		Revenue
Power	$	443,191	24.6%	$	367,025	26.3%
Pipeline		402,425	22.4%		217,182	15.6%
Utilities		576,446	32.0%		447,858	32.1%
Civil		378,916	21.0%		363,020	26.0%
Total	$	1,800,978	100.0%	$	1,395,085	100.0%

Segment Gross Profit

Gross profit by segment for the three and nine months ended September 30, 2017 and 2016 were as follows:


	For the three months ended September 30,
	2017			2016
			% of			% of
			Segment			Segment
Segment	Gross Profit		Revenue	Gross Profit		Revenue
Power	$	18,842	12.2%	$	10,893	10.7%
Pipeline		12,084	14.3%		32,402	30.6%
Utilities		36,081	14.6%		33,925	18.1%
Civil		3,414	2.8%		(27,091)	(24.0%)
Total	$	70,421	11.6%	$	50,129	9.9%


	For the nine months ended September 30,
	2017			2016
			% of			% of
			Segment			Segment
Segment	Gross Profit		Revenue	Gross Profit		Revenue
Power	$	52,498	11.8%	$	36,570	10.0%
Pipeline		79,575	19.8%		43,870	20.2%
Utilities		76,701	13.3%		68,651	15.3%
Civil		1,183	0.3%		(16,400)	(4.5%)
Total	$	209,957	11.7%	$	132,691	9.5%

Segment Goodwill

The amount of goodwill recorded by segment at September 30, 2017 and at December 31, 2016 is presented in Note 8 – “Goodwill and Intangible Assets”.

Geographic Region — Revenues and Total Assets

The Company’s revenues are derived from customers primarily in the United States, with less than 1.0% generated from sources outside of the United States. At September 30, 2017, approximately 1.0% of total assets were located outside of the United States.