Business Segment Information

12 Months Ended

Dec. 31, 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 a 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 business plans to orderly divest of our real estate investment business consistent with our business 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 (see Note 1). We evaluate 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, goodwill, inventory, equity in construction joint ventures and real estate held for development and sale.

Kenny’s assets as of December 31, 2012 have been, and its results will be, reported under the Construction and Large Project Construction segments.

Summarized segment information is as follows (in thousands):

Years Ended December 31,	Construction		Large Project Construction		Construction Materials			Real Estate		Total
2012
Total revenue from reportable segments	$	984,106	$	863,217	$	410,033		$	5,072	$	2,262,428
Elimination of intersegment revenue	—		—		(179,391		)	—		(179,391		)
Revenue from external customers	984,106		863,217		230,642			5,072		2,083,037
Gross profit	77,963		148,418		7,572			806		234,759
Depreciation, depletion and amortization	13,225		4,527		28,490			—		46,242
Segment assets	163,287		173,142		347,869			50,223		734,521
2011
Total revenue from reportable segments	$	1,043,614	$	725,043	$	415,618		$	20,291	$	2,204,566
Elimination of intersegment revenue	—		—		(195,035		)	—		(195,035		)
Revenue from external customers	1,043,614		725,043		220,583			20,291		2,009,531
Gross profit	124,506		104,108		16,641			2,708		247,963
Depreciation, depletion and amortization	14,747		4,547		28,672			189		48,155
Segment assets	111,780		110,441		352,619			75,050		649,890
2010
Total revenue from reportable segments	$	943,245	$	584,406	$	419,355		$	13,256	$	1,960,262
Elimination of intersegment revenue	—		—		(197,297		)	—		(197,297		)
Revenue from external customers	943,245		584,406		222,058			13,256		1,762,965
Gross profit	95,709		67,307		12,018			2,750		177,784
Depreciation, depletion and amortization	18,148		2,759		33,565			522		54,994
Segment assets	123,153		80,259		374,205			87,686		665,303

A reconciliation of segment gross profit to consolidated income (loss) before provision for (benefit from) income taxes is as follows (in thousands):

Years Ended December 31,	2012			2011			2010
Total gross profit from reportable segments	$	234,759		$	247,963		$	177,784
Selling, general and administrative expenses	185,099			162,302			191,593
Restructuring (gains) charges, net	(3,728		)	2,181			109,279
Gain on sales of property and equipment	27,447			15,789			13,748
Other income (expense), net	194			(9,836		)	2,964
Income (loss) before provision for (benefit from) income taxes	$	81,029		$	89,433		$	(106,376	)

A reconciliation of segment assets to consolidated total assets is as follows (in thousands):

December 31,	2012		2011		2010
Total assets for reportable segments	$	734,521	$	649,890	$	665,303
Assets not allocated to segments:
Cash and cash equivalents	321,990		256,990		252,022
Short-term and long-term marketable securities	111,430		149,658		143,706
Receivables, net	325,529		251,838		243,986
Deferred income taxes	36,687		38,571		53,877
Other current assets	67,726		76,074		55,970
Property and equipment, net	50,857		46,180		42,874
Other noncurrent assets	80,747		78,598		77,795
Consolidated total assets	$	1,729,487	$	1,547,799	$	1,535,533