Note 22 - Business Segment Information

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

22. Business Segment Information

Our reportable business segments are the same as our operating segments and correspond with how our chief operating decision maker (our President) regularly reviews financial information to allocate resources and assess performance. Our reportable business segments are: Transportation, Water, Specialty and Materials. 

The Transportation segment focuses on construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports and marine ports for use mostly by the general public.

The Water segment focuses on water-related construction and water management solutions for municipal agencies, commercial water suppliers, industrial facilities and energy companies. It also provides trenchless cured-in-place pipe for sanitary and storm water rehabilitation.

The Specialty segment focuses on construction of various complex projects including infrastructure/site development, mining, public safety, tunnel and power projects.

The Materials segment focuses on production of aggregates, asphalt and construction related materials as well as proprietary sanitary and storm water rehabilitation products including cured-in-place pipe felt and fiberglass-based lining tubes both for internal use and for sale to third parties.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (see Note 1). We evaluate segment performance based on gross profit or loss, and do not include selling, general and administrative expenses or 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):

Years Ended December 31,	Transportation		Water		Specialty		Materials			Total
2019
Total revenue from reportable segments	$	1,892,149	$	468,730	$	727,537	$	530,063		$	3,618,479
Elimination of intersegment revenue		—		—		—		(172,873	)		(172,873	)
Revenue from external customers		1,892,149		468,730		727,537		357,190			3,445,606
Gross profit		55,001		29,766		86,729		50,182			221,678
Depreciation, depletion and amortization		17,579		41,964		26,766		24,258			110,567
Segment assets		308,668		284,559		129,103		369,930			1,092,260
2018 (As Restated)
Total revenue from reportable segments	$	1,946,750	$	345,861	$	625,666	$	514,939		$	3,433,216
Elimination of intersegment revenue		—		—		—		(146,185	)		(146,185	)
Revenue from external customers		1,946,750		345,861		625,666		368,754			3,287,031
Gross profit		137,086		59,134		89,935		48,685			334,840
Depreciation, depletion and amortization		26,715		25,779		24,017		24,015			100,526
Segment assets		348,810		317,633		142,699		353,208			1,162,350
2017 (As Restated)
Total revenue from reportable segments	$	1,912,006	$	132,973	$	620,619	$	467,140		$	3,132,738
Elimination of intersegment revenue		—		—		—		(174,364	)		(174,364	)
Revenue from external customers		1,912,006		132,973		620,619		292,776			2,958,374
Gross profit		129,868		11,544		92,247		45,082			278,741
Depreciation, depletion and amortization		22,300		2,314		9,091		22,393			56,098
Segment assets		336,068		5,544		85,102		282,758			709,472

As of December 31, 2019 and 2018 segment assets included $14.7 million and $15.1 million, respectively, of property and equipment located in foreign countries (primarily Mexico). As of December 31, 2017, all segment assets were located in the United States. During the years ended December 31, 2019, 2018 and 2017 the majority of our revenue was derived in United States.

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

				As Restated
Years Ended December 31,		2019			2018			2017
Total gross profit from reportable segments	$	221,678		$	334,840		$	278,741
Selling, general and administrative expenses		307,981			272,776			220,400
Acquisition and integration expenses		15,299			61,520			—
Gain on sales of property and equipment		(18,703	)		(7,672	)		(4,182	)
Total other income		(5,821	)		(112	)		(5,748	)
(Loss) income before (benefit from) provision for income taxes	$	(77,078	)	$	8,328		$	68,271

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

			As Restated
December 31,	2019		2018
Total assets for reportable segments	$	1,092,260	$	1,162,350
Assets not allocated to segments:
Cash and cash equivalents		262,273		272,804
Short-term and long-term marketable securities		32,799		66,100
Receivables, net		547,417		484,753
Other current assets, excluding segment assets		257,457		232,958
Property and equipment, net, excluding segment assets		43,477		32,903
Investments in affiliates		84,176		84,354
ROU assets		72,534		—
Deferred income taxes, net		50,158		30,142
Other noncurrent assets, excluding segment assets		59,537		60,786
Consolidated total assets	$	2,502,088	$	2,427,150