Business Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

Our reportable segments are: Construction, Large Project Construction, Construction Materials and Real Estate. 

The Construction segment performs various heavy civil construction projects with a large portion of the work focused on new construction and improvement of streets, roads, highways, bridges, site work and other infrastructure projects. These projects are typically bid-build projects completed within two years with a contract value of less than $75 million.

The Large Project Construction segment focuses on large, complex infrastructure projects which typically have longer duration than our Construction segment work. These projects include major highways, mass transit facilities, bridges, tunnels, waterway locks and dams, pipelines, canals and airport infrastructure. This segment primarily includes bid-build, design-build and construction management/general contractor contracts, generally with contract values in excess of $75 million.

The Construction Materials segment mines and processes aggregates and operates plants that produce construction materials for internal use and for sale to third parties.

The Real Estate segment purchases, develops, operates, sells and invests in real estate related projects and provides real estate services for the Company’s operations. The Real Estate segment’s current portfolio consists of residential, retail and office site development projects for sale to home and commercial property developers in Washington, California and Texas. In October 2010, we announced our Enterprise Improvement Plan that includes plans to orderly divest of our real estate investment business consistent with our strategy to focus on our core business.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies contained in our 2011 Annual Report on Form 10-K. We evaluate segment performance based on gross profit or loss, and do not include overhead and non-operating income or expense. Segment assets include property and equipment, intangibles, inventory, equity in construction joint ventures and real estate held for development and sale.

Summarized segment information is as follows:

	Three Months Ended September 30,
(in thousands)	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2012
Total revenue from reportable segments	$	385,744	$	255,918	$	169,350		$	38	$	811,050
Elimination of intersegment revenue	—		—		(82,568		)	—		(82,568		)
Revenue from external customers	385,744		255,918		86,782			38		728,482
Gross profit	33,273		57,814		9,984			28		101,099
Depreciation, depletion and amortization	3,160		1,102		7,498			—		11,760
2011
Total revenue from reportable segments	$	431,101	$	213,320	$	170,574		$	986	$	815,981
Elimination of intersegment revenue	—		—		(87,403		)	—		(87,403		)
Revenue from external customers	431,101		213,320		83,171			986		728,578
Gross profit	58,540		25,557		9,554			242		93,893
Depreciation, depletion and amortization	3,437		1,259		7,487			46		12,229

	Nine Months Ended September 30,
(in thousands)	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2012
Total revenue from reportable segments	$	748,803	$	648,645	$	316,211		$	5,055	$	1,718,714
Elimination of intersegment revenue	—		—		(140,457		)	—		(140,457		)
Revenue from external customers	748,803		648,645		175,754			5,055		1,578,257
Gross profit	59,814		108,302		9,034			801		177,951
Depreciation, depletion and amortization	9,973		3,279		22,055			—		35,307
Segment assets	110,402		109,114		353,756			57,964		631,236
2011
Total revenue from reportable segments	$	784,393	$	513,478	$	309,846		$	7,029	$	1,614,746
Elimination of intersegment revenue	—		—		(144,763		)	—		(144,763		)
Revenue from external customers	784,393		513,478		165,083			7,029		1,469,983
Gross profit	87,482		69,513		10,754			1,088		168,837
Depreciation, depletion and amortization	11,362		3,316		21,594			143		36,415
Segment assets	114,359		108,272		368,141			87,232		678,004

A reconciliation of segment gross profit to consolidated income before provision for income taxes is as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands)	2012		2011			2012			2011
Total gross profit from reportable segments	$	101,099	$	93,893		$	177,951		$	168,837
Selling, general and administrative expenses	41,280		39,112			125,274			121,277
Gain on sales of property and equipment	1,622		5,598			6,493			11,572
Other income (expense), net	1,418		(2,894		)	(2,184		)	(5,866		)
Income before provision for income taxes	$	62,859	$	57,485		$	56,986		$	53,266