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Reportable Segments
12 Months Ended
Dec. 31, 2018
Reportable Segments  
Reportable Segments

Note 13—Reportable Segments

 

We segregate our business into five reportable segments: the Power segment, the Pipeline segment, the Utilities segment, the Transmission segment, which is a new reportable segment created in connection with the acquisition of Willbros, and the Civil segment. Each of our reportable segments is comprised of similar business units that specialize in services unique to the segment. Driving the end-user focused segments are differences in the economic characteristics of each segment, the nature of the services provided by each segment; the production processes of each segment; the type or class of customer using the segment’s services; the methods used by the segment to provide the services; and the regulatory environment of each segment’s customers.

 

The classification of revenue and gross profit for segment reporting purposes can at times require judgment on the part of management. Our segments may perform services across industries or perform joint services for customers in multiple industries. To determine reportable segment gross profit, certain allocations, including allocations of shared and indirect costs, such as facility costs, equipment costs and indirect operating expenses, were made.

 

The following is a brief description of the reportable segments:

 

The Power segment operates throughout the United States and in Canada and specializes in a range of services that include full EPC project delivery, turnkey construction, retrofits, upgrades, repairs, outages, and maintenance for entities in the petroleum, petrochemical, water, and other industries.

 

The Pipeline segment operates throughout the United States and specializes in a range of services, including pipeline construction, pipeline maintenance, pipeline facility work, compressor stations, pump stations, metering facilities, and other pipeline related services for entities in the petroleum and petrochemical industries.

 

The Utilities segment operates primarily in California, the Midwest, and the Southeast regions of the United States and specializes in a range of services, including utility line installation and maintenance, gas and electric distribution, streetlight construction, substation work, and fiber optic cable installation.

 

The Transmission segment operates primarily in the Southeastern and Gulf Coast regions of the United States and specializes in a range of services in electric and gas transmission and distribution, including comprehensive engineering, procurement, maintenance and construction, repair, and restoration of utility infrastructure.

 

The Civil segment operates primarily in the Southeastern and Gulf Coast regions of the United States and specializes in highway and bridge construction, airport runway and taxiway construction, demolition, heavy earthwork, soil stabilization, mass excavation, and drainage projects.

 

All intersegment revenue and gross profit, which was immaterial, has been eliminated in the following tables.

 

Segment Revenue

 

Revenue by segment for the years ended December 31, 2018, 2017 and 2016 was as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2017

 

2016

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Revenue

 

Revenue

 

Power

 

$

694,048

 

23.6%

 

$

606,125

 

25.5%

 

$

478,653

 

24.0%

 

Pipeline

 

 

590,937

 

20.1%

 

 

465,570

 

19.5%

 

 

401,931

 

20.1%

 

Utilities

 

 

902,772

 

30.7%

 

 

806,523

 

33.9%

 

 

637,212

 

31.9%

 

Transmission (1)

 

 

286,749

 

9.8%

 

 

 —

 

 —

 

 

 —

 

 —

 

Civil

 

 

464,972

 

15.8%

 

 

501,777

 

21.1%

 

 

479,152

 

24.0%

 

Total

 

$

2,939,478

 

100.0%

 

$

2,379,995

 

100.0%

 

$

1,996,948

 

100.0%

 


(1)

Represents results from the June 1, 2018 acquisition date of Willbros to December 31, 2018.

 

Segment Gross Profit

 

Gross profit by segment for the years ended December 31, 2018, 2017 and 2016 was as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2017

 

2016

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

    

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

 

 

 

 

 

Segment

    

Gross Profit

    

Revenue

    

Gross Profit

    

Revenue

 

Gross Profit

 

Revenue

 

Power

 

$

109,789

 

15.8%

 

$

65,675

 

10.8%

 

$

49,807

 

10.4%

 

Pipeline

 

 

66,602

 

11.3%

 

 

92,087

 

19.8%

 

 

68,100

 

16.9%

 

Utilities

 

 

111,825

 

12.4%

 

 

113,037

 

14.0%

 

 

100,071

 

15.7%

 

Transmission (1)

 

 

31,904

 

11.1%

 

 

 —

 

 —

 

 

 —

 

 —

 

Civil

 

 

5,617

 

1.2%

 

 

7,635

 

1.5%

 

 

(16,671)

 

(3.5%)

 

Total

 

$

325,737

 

11.1%

 

$

278,434

 

11.7%

 

$

201,307

 

10.1%

 


(1)

Represents results from the June 1, 2018 acquisition date of Willbros to December 31, 2018.

 

Geographic Region — Revenue and Total Assets

 

The majority of our revenue is derived from customers in the United States with approximately 2.9%,  0.3% and 0.6% generated from sources outside of the United States for the years ended December 31, 2018, 2017, and 2016, respectively.  At December 31, 2018 and 2017, approximately 2.8% and 1.0%, respectively of total assets were located outside of the United States.