Segment Information

6 Months Ended

Jun. 30, 2014

Segment Information

Segment Information

7. Segment Information

MYR Group is a specialty contractor serving the U.S. electrical infrastructure market. The Company has two reporting segments, each a separate operating segment, which are referred to as T&D and C&I. Performance measurement and resource allocation for the reporting segments are based on many factors. The primary financial measures used to evaluate the segment information are contract revenues and income from operations, excluding general corporate expenses. General corporate expenses include corporate facility and staffing costs, which includes safety, professional fees, management fees, and intangible amortization. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies in the Company’s annual report on Form 10-K for the year ended December 31, 2013.

Transmission and Distribution:  The T&D segment provides a broad range of services on electric transmission and distribution networks and substation facilities throughout the United States, which include design, engineering, procurement, construction, upgrade, and maintenance and repair services, with a particular focus on construction, maintenance and repair. T&D services include the construction and maintenance of high voltage transmission lines, substations and lower voltage underground and overhead distribution systems. The T&D segment also provides emergency restoration services in response to hurricane, ice or other storm-related damage. T&D customers include electric utilities, cooperatives, municipalities and private developers.

Commercial and Industrial:  The C&I segment provides services such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of bridge, roadway and tunnel lighting. Typical C&I contracts cover electrical contracting services for airports, hospitals, data centers, hotels, stadiums, convention centers, manufacturing plants, processing facilities, waste-water treatment facilities, mining facilities and transportation control and management systems. C&I segment services are primarily focused on the western United States.

The information in the following table was derived from internal financial reports used for corporate management purposes:

	Three months ended						Six months ended
	June 30,						June 30,
(In thousands)	2014			2013			2014			2013
Contract revenues:
T&D	$	166,381		$	174,041		$	328,425		$	334,573
C&I	62,496			39,875			116,090			80,685
	$	228,877		$	213,916		$	444,515		$	415,258
Operating income (loss):
T&D	$	16,782		$	21,746		$	30,744		$	38,440
C&I	4,355			1,429			7,722			4,155
General Corporate	(8,742		)	(7,813		)	(15,939		)	(15,843		)
	$	12,395		$	15,362		$	22,527		$	26,752