XML 102 R22.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Business Segments
 12 Months Ended
Dec. 31, 2019
Business Segments [Abstract]  
Business Segments 15.     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 years ended December 31, 2019, 2018 and 2017:

Reportable Segments

Specialty

Segment

Consolidated

(in thousands)

Civil

Building

Contractors

Total

Corporate

Total

Year ended December 31, 2019

Total revenue

$

2,054,097

$

1,764,753

$

929,738

$

4,748,588

$

—

$

4,748,588

Elimination of intersegment revenue

(274,745)

(22,713)

(298)

(297,756)

—

(297,756)

Revenue from external customers

$

1,779,352

$

1,742,040

$

929,440

$

4,450,832

$

—

$

4,450,832

Income (loss) from construction operations(a)

$

(150,837)

$

23,655

$

(172,637)

$

(299,819)

$

(65,188)

(b)

$

(365,007)

Capital expenditures

$

82,156

$

518

$

688

$

83,362

$

834

$

84,196

Depreciation and amortization(c)

$

47,905

$

1,934

$

4,136

$

53,975

$

11,069

$

65,044

Year ended December 31, 2018

Total revenue

$

1,810,232

$

1,866,902

$

1,006,870

$

4,684,004

$

—

$

4,684,004

Elimination of intersegment revenue

(224,139)

(5,203)

—

(229,342)

—

(229,342)

Revenue from external customers

$

1,586,093

$

1,861,699

$

1,006,870

$

4,454,662

$

—

$

4,454,662

Income (loss) from construction operations(d)

$

168,256

$

43,939

$

43,430

$

255,625

$

(63,749)

(b)

$

191,876

Capital expenditures

$

73,866

$

1,655

$

777

$

76,298

771

77,069

Depreciation and amortization(c)

$

29,685

$

1,956

$

4,358

$

35,999

$

11,268

$

47,267

Year ended December 31, 2017

Total revenue

$

1,856,164

$

1,982,857

$

1,213,708

$

5,052,729

$

—

$

5,052,729

Elimination of intersegment revenue

(253,989)

(41,532)

—

(295,521)

—

(295,521)

Revenue from external customers

$

1,602,175

$

1,941,325

$

1,213,708

$

4,757,208

$

—

$

4,757,208

Income (loss) from construction operations

$

192,207

$

34,199

$

18,938

$

245,344

$

(65,867)

(b)

$

179,477

Capital expenditures

$

27,694

$

267

$

721

$

28,682

$

1,598

$

30,280

Depreciation and amortization(c)

$

33,767

$

2,021

$

4,699

$

40,487

$

11,443

$

51,930

_____________________________________________________________________________________________________________

(a)During the year ended December 31, 2019, the Company recorded a non-cash goodwill impairment charge of $379.9 million in income (loss) from construction operations (an after-tax impact of $330.5 million, or $6.58 per diluted share) resulting from an interim impairment test the Company performed as of June 1, 2019. For further information and breakdown of the goodwill impairment charge by segment, see Note 6. In addition, during the year ended December 31, 2019 the Company recorded a charge of $166.8 million in income (loss) from construction operations (an after-tax impact of $119.4 million, or $2.38 per diluted share), which principally impacted the Civil segment, as a result of the adverse jury verdict on the Alaskan Way Viaduct Matter, as discussed in Note 8. Lastly, the Company recognized a one-time gain of $37.8 million (an after-tax impact of $27.1 million, or $0.54 per diluted share) in Civil segment general and administrative expenses related to a remeasurement of its investment in a joint venture (see Note 13).

(b)Consists primarily of corporate general and administrative expenses.

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

(d)During the year ended December 31, 2018, the Company recorded a charge of $17.8 million in income (loss) 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 adverse 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.

The above were the only changes in estimates considered material to the Company’s results of operations during the periods presented herein.

Total assets by segment were as follows:

As of December 31,

(in thousands)

2019

2018

Civil

$

2,791,402

$

2,574,326

Building

995,298

913,746

Specialty Contractors

635,180

745,313

Corporate and other(a)

63,897

154,367

Total assets

$

4,485,777

$

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.

Geographic Information

Information concerning principal geographic areas is as follows:

Year Ended December 31,

(in thousands)

2019

2018

2017

Revenue:

United States

$

4,073,691

$

4,180,206

$

4,613,644

Foreign and U.S. territories

377,141

274,456

143,564

Total revenue

$

4,450,832

$

4,454,662

$

4,757,208

As of December 31,

(in thousands)

2019

2018

Assets:

United States

$

4,271,722

$

4,225,143

Foreign and U.S. territories

214,055

162,609

Total assets

$

4,485,777

$

4,387,752

Reconciliation of Segment Information to Consolidated Amounts

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

Year Ended December 31,

(in thousands)

2019

2018

2017

Income (loss) from construction operations

$

(365,007)

$

191,876

$

179,477

Other income, net

6,667

4,256

43,882

Interest expense

(67,494)

(63,519)

(69,384)

Income (loss) before income taxes

$

(425,834)

$

132,613

$

153,975