Note 21 - Reportable Segment Information

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

21. Reportable Segment Information

Our reportable segments are the same as our operating segments and correspond with how our CODM regularly reviews financial information to allocate resources and assess performance. Our reportable segments are: Construction and Materials.

The Construction segment focuses on construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure and site development for use by the general public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities and energy companies. It also provides construction of various complex projects including infrastructure / site development, mining, public safety, tunnel, solar, battery storage and other power-related projects. The Materials segment focuses on production of aggregates and asphalt production for internal use and for sale to third parties.

As discussed in Note 2, we have reclassified WMS from discontinued operations to continuing operations for all periods presented. The Water Resources and Mineral Services businesses are included in the Construction segment. Inliner, which was sold in the first quarter of 2022, had both Construction and Materials operations.

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, 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, except per share data):

Years Ended December 31,	Construction		Materials			Total
2022
Total revenue from reportable segments	$	2,803,935	$	671,428		$	3,475,363
Elimination of intersegment revenue		—		(174,107	)	$	(174,107	)
Revenue from external customers	$	2,803,935	$	497,321		$	3,301,256
Gross profit	$	303,881	$	65,613		$	369,494
Depreciation, depletion and amortization	$	41,836	$	26,500		$	68,336
Segment assets as of period end (1)	$	432,868	$	364,336		$	797,204
2021
Total revenue from reportable segments	$	3,076,190	$	587,600		$	3,663,790
Elimination of intersegment revenue		—		(161,925	)	$	(161,925	)
Revenue from external customers	$	3,076,190	$	425,675		$	3,501,865
Gross profit	$	303,228	$	59,417		$	362,645
Depreciation, depletion and amortization	$	71,106	$	26,130		$	97,236
Segment assets as of period end (1)	$	358,561	$	333,089		$	691,650
2020
Total revenue from reportable segments	$	3,181,697	$	548,439		$	3,730,136
Elimination of intersegment revenue		—		(167,677	)	$	(167,677	)
Revenue from external customers	$	3,181,697	$	380,762		$	3,562,459
Gross profit	$	280,169	$	64,619		$	344,788
Depreciation, depletion and amortization	$	79,597	$	22,554		$	102,151

(1) These balances do not include amounts held for sale (see Note 2).

As of  December 31, 2022, 2021 and 2020 segment assets included $4.7 million, $10.3 million and $12.4 million, respectively, of property and equipment located in foreign countries (primarily Mexico). During the years ended  December 31, 2022, 2021 and 2020 less than 5% of our revenue was derived from foreign operations.

A reconciliation of segment gross profit to consolidated income (loss) before income taxes is as follows (in thousands, except per share data):

Years Ended December 31,	2022			2021			2020
Total gross profit from reportable segments	$	369,494		$	362,645		$	344,788
Selling, general and administrative expenses		272,610			303,015			316,284
Non-cash impairment charges		—			—			156,690
Other costs, net		24,120			101,351			37,089
Gain on sales of property and equipment (see Note 11)		(12,617	)		(66,439	)		(6,930	)
Total other (income) expense, net		(6,436	)		2,591			8,118
Income (loss) before income taxes	$	91,817		$	22,127		$	(166,463	)

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

December 31,	2022		2021
Total assets for reportable segments	$	797,204	$	691,650
Assets not allocated to segments:
Cash and cash equivalents		293,991		395,647
Receivables, net		463,987		464,588
Other current assets, excluding segment assets		280,014		323,051
Current assets held for sale		-		392,641
Property and equipment, net, excluding segment assets		64,851		56,658
Short-term and long-term marketable securities		65,943		15,600
Investments in affiliates		80,725		23,368
Right of use assets		49,079		49,312
Deferred income taxes, net		22,209		24,141
Other noncurrent assets, excluding segment assets		49,930		58,271
Consolidated total assets	$	2,167,933	$	2,494,927