Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

17. SEGMENT INFORMATION

The Company and its subsidiaries currently operate in two reportable segments: dredging and environmental & infrastructure. The Company’s financial reporting systems present various data for management to run the business, including profit and loss statements prepared according to the segments presented. Management uses operating income to evaluate performance between the two segments. Segment information for 2016, 2015 and 2014, is provided as follows:

	2016			2015			2014
Dredging:
Contract revenues	$	637,468		$	681,255		$	697,711
Operating income		34,108			64,073			41,620
Depreciation and amortization		54,826			50,556			43,620
Total assets		912,880			872,297			812,181
Property and equipment—net		399,479			397,468			366,027
Goodwill		76,576			76,576			76,576
Investment in joint ventures		381			1			2,114
Capital expenditures		84,263			82,000			79,186
Environmental & infrastructure:
Contract revenues		133,637			181,710			114,412
Operating loss		(19,428	)		(41,114	)		(17,767	)
Depreciation and amortization		8,197			14,029			6,509
Total assets		81,166			127,907			134,324
Property and equipment—net		13,529			32,742			33,418
Goodwill		7,000			7,000			9,750
Investment in joint ventures		4,353			3,760			5,775
Capital expenditures		949			7,279			12,892
Intersegment:
Contract revenues		(3,520	)		(6,087	)		(5,292	)
Total assets		(100,458	)		(102,080	)		(56,773	)
Total:
Contract revenues		767,585			856,878			806,831
Operating income		14,680			22,959			23,853
Depreciation and amortization		63,023			64,585			50,129
Total assets		893,588			898,124			889,732
Property and equipment—net		413,008			430,210			399,445
Goodwill		83,576			83,576			86,326
Investment in joint ventures		4,734			3,761			7,889
Capital expenditures		85,212			89,279			92,078

The Company classifies the revenue related to its dredging projects into the following types of work:

	2016		2015		2014
Capital dredging — U.S.	$	219,914	$	207,058	$	195,635
Capital dredging — foreign		59,413		139,945		155,000
Coastal protection dredging		215,041		184,060		194,219
Maintenance dredging		92,274		120,055		123,923
Rivers & lakes		50,826		30,137		28,934
Total dredging	$	637,468	$	681,255	$	697,711

The Company derived revenues and gross profit from foreign project operations for the years ended December 31, 2016, 2015, and 2014, as follows:

	2016			2015			2014
Contract revenues	$	59,413		$	139,945		$	155,000
Costs of contract revenues		(66,729	)		(105,951	)		(118,682	)
Gross profit	$	(7,316	)	$	33,994		$	36,318

In 2016 and 2015, foreign revenues were primarily from work done in the Middle East and Brazil. In 2014 the majority of the Company’s foreign revenue came from the Wheatstone LNG project in Western Australia and from projects in the Middle East. The majority of the Company’s long-lived assets are marine vessels and related equipment. At any point in time, the Company may employ certain assets outside of the U.S., as needed, to perform work on the Company’s foreign projects. As of December 31, 2016 and 2015, long-lived assets with a net book value of $63,729 and $83,397, respectively, were located outside of the U.S.

The Company’s primary customer is the U.S. Army Corps of Engineers (the “Corps”), which has responsibility for federally funded projects related to waterway navigation and flood control. In 2016, 2015 and 2014, 53.4%, 51.0% and 60.4%, respectively, of contract revenues were earned from contracts with federal government agencies, including the Corps, as well as other federal entities such as the U.S. Coast Guard and U.S. Navy. At December 31, 2016 and 2015, approximately 39.9% and 24.9%, respectively, of accounts receivable, including contract revenues in excess of billings and retainage, were due on contracts with federal government agencies. The Company depends on its ability to continue to obtain federal government contracts, and indirectly, on the amount of federal funding for new and current government dredging projects. Therefore, the Company’s operations can be influenced by the level and timing of federal funding.

The Company recognized an overall loss on a remediation project of $7,260 which if applied to the initial year of the contract would have decreased gross profit by nearly the entire amount of the loss in the year ended December 31, 2015. The Company recognized a loss on a landfill project of $7,446 on which the change in estimate to the gross profit percentage in the year resulted in a cumulative net impact on the project margin, which decreased gross profit by extensively the entire amount of the loss in the year ended December 31, 2015. The project was completed in 2016. In 2014, the Company earned significant revenue from a large, single customer foreign contract. A revision to the estimated gross profit percentage was recognized in the year resulting in a cumulative net impact on the project margin, which increased gross profit by $22,418 for the year ended December 31, 2014, including an increase in gross profit of $7,645 during the fourth quarter. The project was completed in 2014.

Revenue from foreign projects has been concentrated in the Middle East which comprised less than 10% and 14.7% of total revenue in 2016 and 2015, respectively. At December 31, 2016 and 2015, approximately 13.0% and 24.6%, respectively, of total accounts receivable, including retainage and contract revenues in excess of billings, were due on contracts in the Middle East. There is a dependence on future projects in the Middle East, as vessels are currently located there. However, some of the vessels located in Middle East can be moved back to the U.S. or all can be moved to other international markets as opportunities arise.