Operations by Business Segment and Geographical Area

12 Months Ended

Dec. 31, 2012

Operations by Business Segment and Geographical Area

Operations by Business Segment and Geographical Area

15.   Operations by Business Segment and Geographical Area

        The company provides professional services in the fields of engineering, procurement, construction and maintenance, as well as project management, on a global basis and serves a diverse set of industries worldwide. The five principal business segments are: Oil & Gas, Industrial & Infrastructure, Government, Global Services and Power, as discussed further below.

        The Oil & Gas segment provides design, engineering, procurement, construction and project management professional services for upstream oil and gas production, downstream refining, offshore production, chemicals and petrochemicals markets. The revenue of a single customer and its affiliates of the Oil & Gas segment amounted to 11 percent and 13 percent of the company's consolidated revenue during the year ended December 31, 2012 and 2011, respectively.

        The Industrial & Infrastructure segment provides design, engineering, procurement and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics and healthcare sectors. The revenue of a single customer and its affiliates of both the Industrial & Infrastructure and Global Services segments amounted to 13 percent and 12 percent of the company's consolidated revenue during the year ended December 31, 2012 and 2010, respectively.

        The Government segment provides engineering, construction, logistics support, contingency response, and management and operations services to the U.S. government. The percentage of the company's consolidated revenue from work performed for various agencies of the U.S. government was 12 percent, 14 percent and 15 percent during the years ended December 31, 2012, 2011 and 2010, respectively.

        The Global Services segment includes operations and maintenance activities, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services and supply chain solutions. In addition, Global Services provides temporary staffing of technical, professional and administrative personnel for projects in all segments.

        The Power segment provides engineering, procurement, construction, program management, start-up and commissioning, operations and maintenance and technical services to the gas fueled, solid fueled, environmental compliance, renewables, nuclear and power services markets. The Power segment includes the operations of NuScale Power, LLC, the Oregon-based designer of small modular nuclear reactors acquired by the company in 2011, which is considered a separate operating segment of the company.

        The reportable segments follow the same accounting policies as those described in Major Accounting Policies. Management evaluates a segment's performance based upon segment profit. Intersegment revenue is insignificant. The company incurs cost and expenses and holds certain assets at the corporate level which relate to its business as a whole. Certain of these amounts have been charged to the company's business segments by various methods, largely on the basis of usage.

        Engineering services for international projects are often performed within the United States or a country other than where the project is located. Revenue associated with these services has been classified within the geographic area where the work was performed.

        Effective January 1, 2013, the company implemented certain organizational changes that will impact the composition of the company's reportable segments in 2013. The company's operations and maintenance activities, previously included in the Global Services segment, have been integrated into the Industrial & Infrastructure segment. Additionally, the Global Services segment will now include activities associated with the company's efforts to grow its fabrication capabilities and the operations of a new procurement entity, Acqyre, currently being formed to provide strategic sourcing solutions to third parties.

• Operating Information by Segment

	Year Ended December 31,
(in millions)	2012			2011		2010
External revenue
Oil & Gas	$	9,513.9		$	7,961.7	$	7,740.0
Industrial & Infrastructure		12,195.7			9,700.4		6,867.2
Government		3,304.7			3,398.2		3,038.0
Global Services		1,721.7			1,577.7		1,508.6
Power		841.1			743.4		1,695.5
Total external revenue	$	27,577.1		$	23,381.4	$	20,849.3
Segment profit (loss)
Oil & Gas	$	334.7		$	275.6	$	344.0
Industrial & Infrastructure		124.3			389.3		(169.7	)
Government		149.7			145.5		142.2
Global Services		177.6			151.8		133.3
Power		(16.9	)		81.1		170.9
Total segment profit	$	769.4		$	1,043.3	$	620.7
Depreciation and amortization of fixed assets
Oil & Gas	$	—		$	—	$	—
Industrial & Infrastructure		2.4			4.8		4.5
Government		12.9			10.8		7.4
Global Services		124.6			117.5		108.3
Power		0.9			—		—
Corporate and other		69.6			66.3		69.2
Total depreciation and amortization of fixed assets	$	210.4		$	199.4	$	189.4
Capital expenditures
Oil & Gas	$	—		$	—	$	—
Industrial & Infrastructure		0.5			—		5.9
Government		5.7			10.7		16.2
Global Services		184.5			248.6		185.5
Power		3.6			—		—
Corporate and other		60.4			78.9		57.8
Total capital expenditures	$	254.7		$	338.2	$	265.4
Total assets
Oil & Gas	$	1,704.4		$	1,245.0
Industrial & Infrastructure		561.0			943.6
Government		827.2			799.6
Global Services		959.6			934.7
Power		120.6			191.1
Corporate and other		4,103.2			4,154.4
Total assets	$	8,276.0		$	8,268.4
Goodwill
Oil & Gas	$	7.1		$	7.1
Industrial & Infrastructure		12.2			12.2
Government		46.5			46.5
Global Services		24.9			19.8
Power		10.6			10.3
Total goodwill	$	101.3		$	95.9

• •

  Industrial & Infrastructure.  Segment profit for 2012, 2011 and 2010 was impacted by pre-tax charges for the Greater Gabbard Project totaling $416 million, $60 million and $343 million, respectively. Segment profit for 2012 also included a pre-tax gain of $43 million on the sale of the company's unconsolidated interest in a telecommunications company located in the United Kingdom. Segment profit for 2010 also included a pre-tax charge of $95 million for a completed infrastructure joint venture project in California. The Greater Gabbard project is also discussed further in "13. Contingencies and Commitments" above.

  •

  Power.  Segment profit for 2012 and 2011 included research and development expenses of $63 million and $7 million, respectively, associated with the operations of NuScale. Segment profit for 2010 included pre-tax charges of $91 million on a gas-fired power project in Georgia.

Enterprise-Wide Disclosures

	External Revenue Year Ended December 31,						Total Assets As of December 31,
(in millions)	2012		2011		2010		2012		2011
United States	$	7,021.4	$	6,959.8	$	7,640.8	$	4,410.3	$	4,653.4
Canada		5,371.9		4,127.5		2,422.0		925.9		709.9
Asia Pacific (includes Australia)		6,349.7		4,395.5		3,325.4		1,140.3		957.1
Europe		1,632.9		1,736.8		3,030.1		1,196.2		1,287.5
Central and South America		3,526.5		2,822.5		1,687.1		260.2		328.3
Middle East and Africa		3,674.7		3,339.3		2,743.9		343.1		332.2
Total	$	27,577.1	$	23,381.4	$	20,849.3	$	8,276.0	$	8,268.4

Reconciliation of Segment Information to Consolidated Amounts

	Year Ended December 31,
(in millions)	2012			2011			2010
Total segment profit	$	769.4		$	1,043.3		$	620.7
Corporate general and administrative expense		(151.0	)		(163.5	)		(156.3	)
Interest income (expense), net		(0.5	)		16.4			10.6
Earnings attributable to noncontrolling interests		115.6			105.6			84.6
Earnings before taxes	$	733.5		$	1,001.8		$	559.6

Non-Operating (Income) and Expense

        Non-operating expense items of $11.7 million, $13.5 million and $1.6 million were included in corporate general and administrative expense in 2012, 2011 and 2010, respectively. Non-operating expenses in 2012 and 2011 primarily included expenses associated with previously divested operations.