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Segment Information | 9 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
Segment Information | Note 16. Segment Information The Company manages its operations under three operating segments, which represent the Company’s three reportable segments: Safety Services, Specialty Services, and Industrial Services. The segments derive their revenue from distribution, fabrication and various types of service and contracts, primarily in the United States as well as Canada and the United Kingdom. The Safety Services segment focuses on end-to-end integrated occupancy systems (fire protection services, HVAC, and entry systems) including design, installation, inspection and service of these integrated systems. The work performed within this segment spans across industries and facilities and includes commercial, education, healthcare, high tech, industrial and special-hazard settings. The Specialty Services segment provides infrastructure services and specialized industrial plant services, which include maintenance and repair of critical infrastructure such as underground electric, gas, water, sewer and telecommunications infrastructure. Customers within this segment vary from private and public utilities, communications, healthcare, education, manufacturing, industrial plants and governmental agencies throughout the United States. The Industrial Services segment provides a variety of services to the energy industry focused on transmission and distribution. Services within this segment include oil and gas pipeline infrastructure, access and road construction, supporting facilities, and performing ongoing integrity management and maintenance. The accounting policies of the reportable segments are the same as those described in Note 2 – “Basis of Presentation and Significant Accounting Policies”. All intercompany transactions and balances are eliminated in consolidation. Intercompany revenue and costs between entities within a reportable segment are eliminated to arrive at segment totals, and eliminations between segments are separately presented. Corporate results include amounts related to corporate functions such as administrative costs, professional fees, acquisition-related transaction costs (exclusive of acquisition integration costs, which are included within the segment results of the acquired businesses), and other discrete items. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. As appropriate, the Company supplements the reporting of consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. The Company believes these non-U.S. GAAP measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. The Company uses EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results for its reportable segments. Segment EBITDA is calculated in a manner consistent with consolidated EBITDA. Summarized financial information for the Company’s reportable segments are presented and reconciled to consolidated financial information in the following tables, including a reconciliation of consolidated operating income to EBITDA. The tables below may contain slight summation differences due to rounding:
|  | Three Months Ended September 30, 2020 (Successor) |
|  | Safety Services |  |  | Specialty Services |  |  | Industrial Services |  |  | Corporate and Eliminations |  |  | Consolidated |
Net revenues |  | $ | 404 |  |  | $ | 400 |  |  | $ | 158 |  |  | $ | (4 | ) |  | $ | 958 |
EBITDA Reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating income (loss) |  | $ | (24 | ) |  | $ | 105 |  |  | $ | 17 |  |  | $ | (36 | ) |  | $ | 62 |
Plus: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment income and other, net |  |  | 4 |  |  |  | 5 |  |  |  | — |  |  |  | (3 | ) |  |  | 6 |
Depreciation(1) |  |  | 2 |  |  |  | 11 |  |  |  | 6 |  |  |  | 2 |  |  |  | 21 |
Amortization(2) |  |  | 35 |  |  |  | 5 |  |  |  | (10 | ) |  |  | 1 |  |  |  | 31 |
EBITDA |  | $ | 17 |  |  | $ | 126 |  |  | $ | 13 |  |  | $ | (36 | ) |  | $ | 120 |
Total assets |  | $ | 1,702 |  |  | $ | 1,105 |  |  | $ | 341 |  |  | $ | 678 |  |  | $ | 3,826 |
Capital expenditures |  |  | — |  |  |  | 5 |  |  |  | 2 |  |  |  | — |  |  |  | 7 |
|  | Three Months Ended September 30, 2019 (Predecessor) |
|  | Safety Services |  |  | Specialty Services |  |  | Industrial Services |  |  | Corporate and Eliminations |  |  | Consolidated |
Net revenues |  | $ | 472 |  |  | $ | 407 |  |  | $ | 245 |  |  | $ | (6 | ) |  | $ | 1,118 |
EBITDA Reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating income (loss) |  | $ | 56 |  |  | $ | 32 |  |  | $ | 6 |  |  | $ | (81 | ) |  | $ | 13 |
Plus: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment income and other, net |  |  | — |  |  |  | 6 |  |  |  | 1 |  |  |  | 1 |  |  |  | 8 |
Depreciation |  |  | 1 |  |  |  | 10 |  |  |  | 6 |  |  |  | 2 |  |  |  | 19 |
Amortization |  |  | 1 |  |  |  | 5 |  |  |  | 2 |  |  |  | — |  |  |  | 8 |
EBITDA |  | $ | 58 |  |  | $ | 53 |  |  | $ | 15 |  |  | $ | (78 | ) |  | $ | 48 |
Total assets |  | $ | 812 |  |  | $ | 882 |  |  | $ | 394 |  |  | $ | 227 |  |  | $ | 2,315 |
Capital expenditures |  |  | — |  |  |  | 7 |  |  |  | 5 |  |  |  | 1 |  |  |  | 13 |
|  | Nine Months Ended September 30, 2020 (Successor) |
|  | Safety Services |  |  | Specialty Services |  |  | Industrial Services |  |  | Corporate and Eliminations |  |  | Consolidated |
Net revenues |  | $ | 1,199 |  |  | $ | 1,049 |  |  | $ | 468 |  |  | $ | (11 | ) |  | $ | 2,705 |
EBITDA Reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating loss |  | $ | (12 | ) |  | $ | (9 | ) |  | $ | (37 | ) |  | $ | (87 | ) |  | $ | (145 | )
Plus: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment income and other, net |  |  | 9 |  |  |  | 13 |  |  |  | — |  |  |  | (2 | ) |  |  | 20 |
Depreciation(1) |  |  | 4 |  |  |  | 35 |  |  |  | 19 |  |  |  | 4 |  |  |  | 62 |
Amortization(2) |  |  | 83 |  |  |  | 41 |  |  |  | 7 |  |  |  | 3 |  |  |  | 134 |
EBITDA |  | $ | 84 |  |  | $ | 80 |  |  | $ | (11 | ) |  | $ | (82 | ) |  | $ | 71 |
Total assets |  | $ | 1,702 |  |  | $ | 1,105 |  |  | $ | 341 |  |  | $ | 678 |  |  | $ | 3,826 |
Capital expenditures |  |  | 1 |  |  |  | 14 |  |  |  | 8 |  |  |  | 1 |  |  |  | 24 |
|  | Nine Months Ended September 30, 2019 (Predecessor) |
|  | Safety Services |  |  | Specialty Services |  |  | Industrial Services |  |  | Corporate and Eliminations |  |  | Consolidated |
Net revenues |  | $ | 1,342 |  |  | $ | 1,107 |  |  | $ | 670 |  |  | $ | (12 | ) |  | $ | 3,107 |
EBITDA Reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating income (loss) |  | $ | 161 |  |  | $ | 60 |  |  | $ | — |  |  | $ | (119 | ) |  | $ | 102 |
Plus: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment income and other, net |  |  | 1 |  |  |  | 7 |  |  |  | 1 |  |  |  | 2 |  |  |  | 11 |
Depreciation |  |  | 4 |  |  |  | 28 |  |  |  | 14 |  |  |  | 6 |  |  |  | 52 |
Amortization |  |  | 4 |  |  |  | 16 |  |  |  | 6 |  |  |  | — |  |  |  | 26 |
EBITDA |  | $ | 170 |  |  | $ | 111 |  |  | $ | 21 |  |  | $ | (111 | ) |  | $ | 191 |
Total assets |  | $ | 812 |  |  | $ | 882 |  |  | $ | 394 |  |  | $ | 227 |  |  | $ | 2,315 |
Capital expenditures |  |  | 4 |  |  |  | 27 |  |  |  | 21 |  |  |  | 1 |  |  |  | 53 |
(1) | Depreciation for the nine months ended September 30, 2020 includes a cumulative adjustment to depreciation expense resulting from the measurement period adjustments of property and equipment. Refer to Note 10 – “Property and Equipment, Net” for additional information. The adjustment to depreciation expense recorded during the nine months ended September 30, 2020 was $(2), $5, $3 and $(2) for the Safety Services, Specialty Services, Industrial Services and Corporate and Eliminations segments, respectively. If the property and equipment fair values had been known at the date of the APi Acquisition, depreciation expense for the year ended December 31, 2019 (Successor) would have changed by $(1), $2, $2, and $(1) for the Safety Services, Specialty Services, Industrial Services and Corporate and Eliminations segments, respectively. If the property and equipment fair values had been known at the date of the APi Acquisition, depreciation expense for the three months ended March 30, 2020 would have changed by $(1), $3, $1, and $(1) for the Safety Services, Specialty Services, Industrial Services and Corporate and Eliminations segments, respectively. EBITDA as presented in the above EBITDA reconciliation tables, would not have been impacted by these changes.
(2) | Amortization for the three and nine months ended September 30, 2020 includes a cumulative adjustment to amortization expense resulting from the measurement period adjustments to intangible assets. Refer to Note 7 – “Goodwill and Intangibles” for additional information. The adjustment to amortization expense recorded during the three and nine months ended September 30, 2020 was $8, $(9), and $(14) for the Safety Services, Specialty Services, and Industrial Services segments, respectively. If the intangible asset values had been known at the date of the APi Acquisition, amortization expense would have changed for the Safety Services, Specialty Services and Industrial Services segments by $3, $(3), and $(5) for the year ended December 31, 2019, $3, $(3), and $(5) for the three months ended March 30, 2020, and $2, $(3), and $(4) for the three months ended June 30, 2020, respectively. EBITDA, as presented in the above EBITDA reconciliation tables, would not have been impacted by these changes.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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