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Reportable Segments
12 Months Ended
Dec. 31, 2017
Reportable Segments  
Reportable Segments

Note 14—Reportable Segments

 

Through the end of the year 2016, we segregated our business into three reportable segments: the Energy segment, the East Construction Services segment and the West Construction Services segment. In the first quarter 2017, we changed our reportable segments in connection with a realignment of our internal organization and management structure. The segment changes reflect the focus of our CODM on the range of services we provide to our end user markets. Our CODM regularly reviews our 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 has been restated to conform to the new segment presentation.

 

Each of our reportable segments is comprised of similar business units that specialize in services unique to the segment. Driving the new end-user focused segments are differences in the economic characteristics of each segment, the nature of the services provided by each segment; the production processes of each segment; the type or class of customer using the segment’s services; the methods used by the segment to provide the services; and the regulatory environment of each segment’s customers.

 

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, the Midwest, and the 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 years ended December 31, 2017, 2016 and 2015 was as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

2016

 

2015

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Revenue

 

Revenue

 

Power

 

$

606,125

 

25.5%

 

$

478,653

 

24.0%

 

$

466,292

 

24.2%

 

Pipeline

 

 

465,570

 

19.5%

 

 

401,931

 

20.1%

 

 

299,365

 

15.5%

 

Utilities

 

 

806,523

 

33.9%

 

 

637,212

 

31.9%

 

 

587,047

 

30.4%

 

Civil

 

 

501,777

 

21.1%

 

 

479,152

 

24.0%

 

 

576,711

 

29.9%

 

Total

 

$

2,379,995

 

100.0%

 

$

1,996,948

 

100.0%

 

$

1,929,415

 

100.0%

 

 

Segment Gross Profit

 

Gross profit by segment for the years ended December 31, 2017, 2016 and 2015 was as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

2016

 

2015

 

 

    

 

 

    

% of

    

 

 

    

% of

 

 

 

    

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

 

 

 

 

 

Segment

 

Gross Profit

 

Revenue

 

Gross Profit

 

Revenue

 

Gross Profit

 

Revenue

 

Power

 

$

65,675

 

10.8%

 

$

49,807

 

10.4%

 

$

53,620

 

11.5%

 

Pipeline

 

 

92,087

 

19.8%

 

 

68,100

 

16.9%

 

 

24,685

 

8.2%

 

Utilities

 

 

113,037

 

14.0%

 

 

100,071

 

15.7%

 

 

96,450

 

16.4%

 

Civil

 

 

7,635

 

1.5%

 

 

(16,671)

 

(3.5%)

 

 

45,118

 

7.8%

 

Total

 

$

278,434

 

11.7%

 

$

201,307

 

10.1%

 

$

219,873

 

11.4%

 

 

Geographic Region — Revenues and Total Assets

 

The majority of our revenues are derived from customers in the United States with approximately 1% generated from sources outside of the United States.  At December 31, 2017 and 2016, approximately 1% of total assets were located outside of the United States.