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Reportable Segments
6 Months Ended
Jun. 30, 2018
Reportable Segments  
Reportable Segments

 

Note 17—Reportable Segments

 

We segregate our business into five reportable segments: the Power segment, the Pipeline segment, the Utilities segment, the Transmission segment, which is a new reportable segment created in connection with the acquisition of Willbros, and the Civil segment. Each of our reportable segments is comprised of similar business units that specialize in services unique to the segment. Driving the 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 revenue 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 Transmission segment operates primarily in the Southeastern and Gulf Coast regions of the United States and specializes in a range of services in electric and gas transmission and distribution, including comprehensive engineering, procurement, maintenance and contruction, repair, and restoration of utility infrastructure.

 

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 revenue and gross profit, which were immaterial, have been eliminated in the following tables. 

 

Segment Revenue

 

Revenue by segment for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 30, 

 

 

 

2018

 

2017

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Power

 

$

167,001

 

25.7%

 

$

157,773

 

25.0%

 

Pipeline

 

 

90,605

 

14.0%

 

 

134,623

 

21.3%

 

Utilities

 

 

228,852

 

35.3%

 

 

212,942

 

33.8%

 

Transmission (1)

 

 

42,454

 

6.5%

 

 

 —

 

0.0%

 

Civil

 

 

119,875

 

18.5%

 

 

125,827

 

19.9%

 

Total

 

$

648,787

 

100.0%

 

$

631,165

 

100.0%

 


(1)

Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended June 30, 

 

 

 

2018

 

2017

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Power

 

$

333,556

 

28.9%

 

$

289,013

 

24.2%

 

Pipeline

 

 

148,188

 

12.9%

 

 

318,068

 

26.7%

 

Utilities

 

 

395,562

 

34.3%

 

 

329,922

 

27.7%

 

Transmission (1)

 

 

42,454

 

3.7%

 

 

 —

 

0.0%

 

Civil

 

 

233,146

 

20.2%

 

 

255,664

 

21.4%

 

Total

 

$

1,152,906

 

100.0%

 

$

1,192,667

 

100.0%

 


(1)

Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018.

 

Segment Gross Profit

 

Gross profit by segment for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 30, 

 

 

 

2018

 

2017

 

 

    

 

 

    

% of

    

 

 

    

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

Segment

 

Gross Profit

 

Revenue

 

Gross Profit

 

Revenue

 

Power

 

$

20,526

 

12.3%

 

$

18,132

 

11.5%

 

Pipeline

 

 

10,678

 

11.8%

 

 

39,366

 

29.2%

 

Utilities

 

 

34,564

 

15.1%

 

 

32,347

 

15.2%

 

Transmission (1)

 

 

5,721

 

13.5%

 

 

 —

 

0.0%

 

Civil

 

 

(70)

 

(0.1%)

 

 

(5,362)

 

(4.3%)

 

Total

 

$

71,419

 

11.0%

 

$

84,483

 

13.4%

 


(1)

Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended June 30, 

 

 

 

2018

 

2017

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

Segment

    

Gross Profit

    

Revenue

    

Gross Profit

    

Revenue

 

Power

 

$

44,597

 

13.4%

 

$

33,656

 

11.6%

 

Pipeline

 

 

18,569

 

12.5%

 

 

67,491

 

21.2%

 

Utilities

 

 

43,615

 

11.0%

 

 

40,620

 

12.3%

 

Transmission (1)

 

 

5,721

 

13.5%

 

 

 —

 

0.0%

 

Civil

 

 

3,477

 

1.5%

 

 

(2,231)

 

(0.9%)

 

Total

 

$

115,979

 

10.1%

 

$

139,536

 

11.7%

 


(1)

Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018.

 

Segment Goodwill

 

The amount of goodwill recorded by each segment at June 30, 2018 and at December 31, 2017 is presented in Note 7 – “Goodwill and Intangible Assets”.  

 

Geographic Region — Revenue and Total Assets

 

The majority of our revenue is derived from customers in the United States with approximately  1.4% generated from sources outside of the United States, principally in Canada. At June 30, 2018 and December 31, 2017, approximately 2.2%  of total assets were located outside of the United States.