Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Note 20. SEgment information

The Company has combined the leadership responsibility and full accountability for two of its operating segments. As a result, beginning with the three months ended March 31, 2022, the information for the Industrial Services segment is combined with the Specialty Services segment and the Company presents financial information for the Safety Services and Specialty Services segments, which are the two primary operating segments and also the reportable segments. Refer to Note 2 - "Basis of Presentation and Significant Accounting Policies" for more information. The information in the tables below has been retroactively adjusted to reflect these changes in reporting segments.

The Company manages its operations under two operating segments which represent the Company’s two reportable segments: Safety Services and Specialty Services. This structure is generally focused on various businesses related to contracting services and maintenance of industrial and commercial facilities. Both reportable segments derive their revenues from installation, inspection, maintenance, service and repair, retrofitting and upgrading, engineering and design, distribution, fabrication, and various types of other services in approximately 20 countries.

The Safety Services segment focuses on end-to-end integrated occupancy systems (fire protection solutions, HVAC and entry systems), including design, installation, inspection and service of these integrated systems. The work performed within this segment spans across industries and facilities and includes commercial, education, healthcare, high tech, industrial and special-hazard settings.

The Specialty Services segment provides a variety of infrastructure services and specialized industrial plant services, which includes maintenance and repair of critical infrastructure such as underground electric, gas, water, sewer and telecommunications infrastructure. This segment’s services include engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading, pipeline infrastructure, access and road construction, supporting facilities, and performing ongoing integrity management and maintenance to customers within the energy industry. Customers within this segment vary from private and public utilities, communications, healthcare, education, transportation, manufacturing, industrial plants and governmental agencies throughout North America.

The accounting policies of the reportable segments are the same as those described in Note 2 – “Basis of Presentation and Significant Accounting Policies.” All intercompany transactions and balances are eliminated in consolidation. Intercompany revenues and costs between entities within a reportable segment are eliminated to arrive at segment totals and eliminations between segments are separately presented. Corporate results include amounts related to corporate functions such as administrative costs, professional fees, acquisition-related transaction costs (exclusive of acquisition integration costs, which are included within the segment results of the acquired businesses), and other discrete items.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. As appropriate, the Company supplements the reporting of consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. The Company believes these non-U.S. GAAP measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. The Company uses EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results for its reportable segments. Segment EBITDA is calculated in a manner consistent with consolidated EBITDA.

Summarized financial information for the Company’s reportable segments is presented and reconciled to consolidated financial information in the following tables, including a reconciliation of consolidated operating income to EBITDA. The tables below may contain slight summation differences due to rounding:

	Three Months Ended March 31, 2022
	Safety Services		Specialty Services			Corporate and Eliminations			Consolidated
Net revenues	$	1,074	$	412		$	(15	)	$	1,471
EBITDA Reconciliation
Operating income (loss)	$	63	$	(7	)	$	(63	)	$	(7	)
Plus:
Investment income and other, net		—		1			(1	)		—
Non-service pension benefit		11		—			—			11
Depreciation		7		12			—			19
Amortization		42		14			1			57
EBITDA	$	123	$	20		$	(63	)	$	80
Total assets	$	6,423	$	1,254		$	465		$	8,142
Capital expenditures		6		6			—			12

	Three Months Ended March 31, 2021
	Safety Services		Specialty Services			Corporate and Eliminations			Consolidated
Net revenues	$	466	$	344		$	(7	)	$	803
EBITDA Reconciliation
Operating income (loss)	$	45	$	(18	)	$	(29	)	$	(2	)
Plus:
Investment income and other, net		3		1			(1	)		3
Depreciation		2		16			1			19
Amortization		15		15			1			31
EBITDA	$	65	$	14		$	(28	)	$	51
Total assets	$	2,122	$	1,236		$	860		$	4,218
Capital expenditures		1		17			—			18