Concentration of Risk and Enterprise Wide Disclosures

12 Months Ended

Dec. 31, 2018

Concentration of Risk and Enterprise Wide Disclosures



16.	Concentration of Risk and Enterprise Wide Disclosures

The following table shows contract revenues generated from the Company’s customers that accounted for more than 10% of consolidated revenues (amounts in thousands):



	Years Ended December 31,
	2018				2017				2016
	Amount		%		Amount		%		Amount		%
Utah Department of Transportation (“UDOT”)	$	153,276	14.8	%	$	140,529	14.7	%	$	79,421	11.5	%
Texas Department of Transportation (“TXDOT”)	*		*		103,236		10.8	%	85,224		12.4	%
California Department of Transportation (“Caltrans”)	*		*		*		*		$	88,627	12.8	%

*Represents less than 10% of revenues

At December 31, 2018 and 2017, there were no customers who owed the Company amounts greater than 10% of contract receivables.

The Company’s revenue and receivables are entirely derived from the construction of U.S. projects and all of the Company’s assets are held domestically within the U.S.



18.	Segment Information

Due to the April 3, 2017 acquisition of Tealstone, the Company has reviewed its reportable segments, operating segments and reporting units. Based on our review, we have concluded that our operations consist of two reportable segments, two operating segments and two reporting unit components: heavy civil construction and residential construction. In making this determination, the Company considered the discrete financial information used by our Chief Operating Decision Maker (“CODM”). Based on this approach, the Company noted that the CODM organizes, evaluates and manages the financial information of our aggregated heavy civil construction projects and the entire residential construction division separately when making operating decisions and assessing the Company’s overall performance. Furthermore, we considered the differences between the types of work performed in each reporting unit. Each heavy civil construction project has similar characteristics, includes similar services, has similar types of customers and is subject to similar economic and regulatory environments. Projects in our heavy civil construction segment typically last for several years, involve several subtasks and are accounted for using the over time recognition method (formally known as percentage-of-completion method). Conversely, our residential construction projects typically consist of a high volume of independent units performed for customers that are billed, paid and accounted for as the individual units are completed. Each job performed in our residential construction segment typically takes less than one month to complete.

Segment reporting is aligned based upon the services offered by our two operating groups, which represent our reportable segments: heavy civil construction and residential construction, as mentioned above. Our CODM evaluates the performance of the aforementioned operating groups based upon revenue and income from operations. Each operating group’s income from operations reflects corporate costs, allocated based primarily upon revenue. Prior to the acquisition of Tealstone, we only had one reportable segment, heavy civil construction.

The following table presents total revenue and income from operations by reportable segment for the years ended December 31, 2018, 2017 and 2016 (amounts in thousands):



	Years Ended December 31,
	2018		2017		2016
Revenue
Heavy Civil Construction	$	885,971	$	849,966	$	690,123
Residential Construction	151,696		107,992		—
Total Revenue	$	1,037,667	$	957,958	$	690,123

Operating Income (loss)
Heavy Civil Construction	$	21,524	$	10,822	$	(4,729	)
Residential Construction	21,087		15,354		—
Total Operating Income (loss)	$	42,611	$	26,176	$	(4,729	)

The following table presents total assets by reportable segment at December 31, 2018 and December 31, 2017 (amounts in thousands):



	December 31, 2018		December 31, 2017
Assets
Heavy Civil Construction	$	355,011	$	363,125
Residential Construction	127,562		100,173
Total Assets	$	482,573	$	463,298

Goodwill for the heavy civil construction and residential segments was $54.8 million and $30.4 million, respectively, for both of the years ending December 31, 2018 and 2017. Amortization expense for the years ended December 31, 2018 and 2017 was $0.7 million and $0.5 million for heavy civil construction segment and $1.7 million and $1.3 million for residential segment, respectively.