Note 21 - Business Segment Information

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

21. 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
2020
Total revenue from reportable segments	$	2,017,989	$	440,317	$	723,391	$	548,439		$	3,730,136
Elimination of intersegment revenue		—		—		—		(167,677	)		(167,677	)
Revenue from external customers		2,017,989		440,317		723,391		380,762			3,562,459
Gross (loss) profit		133,748		54,241		92,180		64,619			344,788
Depreciation, depletion and amortization		19,933		35,753		23,911		22,554			102,151
Segment assets		303,435		133,969		109,967		351,606			898,977
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
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

As of December 31, 2020, 2019 and 2018 segment assets included $12.4 million, $14.7 million and $15.1 million, respectively, of property and equipment located in foreign countries (primarily Mexico). During the years ended December 31, 2020, 2019 and 2018 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):

Years Ended December 31,		2020			2019			2018
Total gross profit from reportable segments	$	344,788		$	221,678		$	334,840
Selling, general and administrative expenses		353,320			307,981			272,776
Acquisition and integration expenses		53			15,299			61,520
Non-cash impairment charges		156,690			—			—
Gain on sales of property and equipment		(6,930	)		(18,703	)		(7,672	)
Total other expense (income)		8,118			(5,821	)		(112	)
(Loss) income before provision for (benefit from) income taxes	$	(166,463	)	$	(77,078	)	$	8,328

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

December 31,	2020		2019
Total assets for reportable segments	$	898,977	$	1,092,260
Assets not allocated to segments:
Cash and cash equivalents		436,136		262,273
Short-term and long-term marketable securities		5,200		32,799
Receivables, net		540,812		547,417
Other current assets, excluding segment assets		207,138		257,457
Property and equipment, net, excluding segment assets		49,079		43,477
Investments in affiliates		75,287		84,176
ROU assets		62,256		72,534
Deferred income taxes, net		41,839		50,158
Other noncurrent assets, excluding segment assets		63,272		59,537
Consolidated total assets	$	2,379,996	$	2,502,088