Business Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

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

The Construction segment performs various construction projects with a large portion of the work focused on new construction and improvement of streets, roads, highways, bridges, site work, underground, power-related facilities, utilities 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, power-related facilities, utilities and airport infrastructure. This segment primarily includes bid-build, design-build, and construction management/general contractor contracts, together with various contract methods relating to Public Private Partnerships, 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. In addition, the Construction Materials segment includes real estate investment activity that was not material for any of the periods presented.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies contained in our 2014 Annual Report on Form 10-K, except as disclosed in Note 1. We evaluate segment performance based on gross profit or loss, and do not include selling, general and administrative expenses and non-operating income or expense. Segment assets include property and equipment, intangibles, goodwill, inventory and equity in construction joint ventures.

Summarized segment information is as follows (in thousands):

	Three Months Ended September 30,
	Construction		Large Project Construction		Construction Materials			Total
2015
Total revenue from reportable segments	$	427,018	$	217,084	$	165,771		$	809,873
Elimination of intersegment revenue	—		—		(58,497		)	(58,497		)
Revenue from external customers	427,018		217,084		107,274			751,376
Gross profit	64,298		22,572		14,028			100,898
Depreciation, depletion and amortization	5,194		3,308		5,799			14,301
2014
Total revenue from reportable segments	$	447,097	$	179,446	$	146,789		$	773,332
Elimination of intersegment revenue	—		—		(53,568		)	(53,568		)
Revenue from external customers	447,097		179,446		93,221			719,764
Gross profit	48,802		5,679		12,211			66,692
Depreciation, depletion and amortization	4,621		4,777		5,408			14,806

	Nine Months Ended September 30,
	Construction		Large Project Construction		Construction Materials			Total
2015
Total revenue from reportable segments	$	921,143	$	590,282	$	332,920		$	1,844,345
Elimination of intersegment revenue	—		—		(103,478		)	(103,478		)
Revenue from external customers	921,143		590,282		229,442			1,740,867
Gross profit	126,035		55,116		25,624			206,775
Depreciation, depletion and amortization	14,752		8,311		16,806			39,869
Segment assets	140,493		271,878		300,739			713,110
2014
Total revenue from reportable segments	$	873,357	$	611,110	$	286,698		$	1,771,165
Elimination of intersegment revenue	—		—		(85,684		)	(85,684		)
Revenue from external customers	873,357		611,110		201,014			1,685,481
Gross profit	82,773		72,264		15,478			170,515
Depreciation, depletion and amortization	12,865		12,001		16,267			41,133
Segment assets	150,070		247,694		322,504			720,268

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)	2015			2014			2015			2014
Total gross profit from reportable segments	$	100,898		$	66,692		$	206,775		$	170,515
Selling, general and administrative expenses	50,077			47,386			151,374			147,731
Gain on sales of property and equipment	(804		)	(3,004		)	(2,090		)	(6,891		)
Other expense	1,766			2,124			6,234			6,323
Income before provision for income taxes	$	49,859		$	20,186		$	51,257		$	23,352