(17) Business Segments

The Company offers general contracting, pre-construction planning and comprehensive project management services, including planning and scheduling of manpower, equipment, materials and subcontractors required for the timely completion of a project in accordance with the terms and specifications contained in a construction contract. The Company also offers self-performed construction services: site work, concrete forming and placement, steel erection, electrical, mechanical, plumbing, and HVAC (heating, ventilation and air conditioning). As described below, the Company’s business is conducted through three segments: Civil, Building and Specialty Contractors. These segments are determined based on how the Company’s Chairman and Chief Executive Officer (chief operating decision maker) aggregates business units when evaluating performance and allocating resources.

The Civil segment specializes in public works construction and the replacement and reconstruction of infrastructure. The contracting services provided by the Civil segment include construction and rehabilitation of highways, bridges, tunnels, mass-transit systems, and water management and wastewater treatment facilities.

The Building segment has significant experience providing services for private and public works customers in a number of specialized building markets, including: high-rise residential, hospitality and gaming, transportation, health care, commercial and government offices, sports and entertainment, education, correctional facilities, biotech, pharmaceutical, industrial and technology.

The Specialty Contractors segment specializes in electrical, mechanical, plumbing, HVAC, fire protection systems and pneumatically placed concrete for a full range of civil and building construction projects in the industrial, commercial, hospitality and gaming, and mass-transit end markets. This segment provides the Company with unique strengths and capabilities that allow the Company to position itself as a full-service contractor with greater control over scheduled work, project delivery, and cost and risk management.

To the extent that a contract is co-managed and co-executed among segments, the Company allocates the share of revenues and costs of the contract to each segment to reflect the shared responsibilities in the management and execution of the project.

The following tables set forth certain reportable segment information relating to the Company’s operations for the three months ended March 31, 2019 and 2018:



	Reportable Segments
					Specialty							Consolidated
(in thousands)	Civil			Building	Contractors		Total		Corporate			Total
Three Months Ended March 31, 2019
Total revenue	$	383,622	$	436,243	$	191,527	$	1,011,392	$	—		$	1,011,392
Elimination of intersegment revenue		(50,128)		(2,777)		—		(52,905)		—			(52,905)
Revenue from external customers	$	333,494	$	433,466	$	191,527	$	958,487	$	—		$	958,487
Income (loss) from construction operations	$	41,745	$	3,133	$	(7,488)	$	37,390	$	(14,477)	(a)	$	22,913
Capital expenditures	$	14,012	$	55	$	123	$	14,190	$	222		$	14,412
Depreciation and amortization(b)	$	9,370	$	503	$	1,064	$	10,937	$	2,780		$	13,717

Three Months Ended March 31, 2018
Total revenue	$	325,400	$	490,617	$	274,801	$	1,090,818	$	—		$	1,090,818
Elimination of intersegment revenue		(62,286)		(376)		—		(62,662)		—			(62,662)
Revenue from external customers	$	263,114	$	490,241	$	274,801	$	1,028,156	$	—		$	1,028,156
Income (loss) from construction operations(c)	$	2,839	$	6,425	$	7,235	$	16,499	$	(17,424)	(a)	$	(925)
Capital expenditures	$	19,196	$	278	$	419	$	19,893	$	77		$	19,970
Depreciation and amortization(b)	$	5,756	$	481	$	1,112	$	7,349	$	2,838		$	10,187

(a)

Consists primarily of corporate general and administrative expenses.

(b)

Depreciation and amortization is included in income (loss) from construction operations.

(c)

During the three months ended March 31, 2018, the Company recorded a charge of $17.8 million in income from construction operations (an after-tax impact of $12.8 million, or $0.25 per diluted share), which was primarily non-cash, as a result of the unexpected outcome of an arbitration decision related to a subcontract back charge dispute on a Civil segment project in New York that was completed in 2013.

A reconciliation of segment results to the consolidated income (loss) before income taxes is as follows:



	Three Months Ended March 31,
(in thousands)	2019		2018
Income (loss) from construction operations	$	22,913	$	(925)
Other income, net		422		780
Interest expense		(16,425)		(15,065)
Income (loss) before income taxes	$	6,910	$	(15,210)

Total assets by segment were as follows:



	As of		As of
(in thousands)	March 31, 2019		December 31, 2018
Civil	$	2,606,842	$	2,574,326
Building		936,099		913,746
Specialty Contractors		744,509		745,313
Corporate and other(a)		268,820		154,367
Total assets	$	4,556,270	$	4,387,752

(a)

Consists principally of cash, equipment, tax-related assets and insurance-related assets, offset by the elimination of assets related to intersegment revenue.