v2.4.0.8
Operations by Business Segment and Geographical Area
 9 Months Ended
Sep. 30, 2013
Operations by Business Segment and Geographical Area  
Operations by Business Segment and Geographical Area

(16)        Effective January 1, 2013, the company implemented certain organizational changes that impacted the composition of its reportable segments. The company’s operations and maintenance activities, previously included in the Global Services segment, have been integrated into the Industrial & Infrastructure segment as part of the new industrial services business line, which also includes project execution activities that were previously reported in the manufacturing and life sciences business line. Additionally, the Global Services segment now includes activities associated with the company’s efforts to grow its fabrication and construction capabilities and the operations of a new procurement entity, Acqyre, which was formed to provide strategic sourcing solutions to third parties. Segment operating information and total assets for 2012 have been recast to reflect these organizational changes.

 

Operating information by segment is as follows:

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

External Revenue (in millions)

 

2013

 

2012

 

2013

 

2012

 

Oil & Gas

 

$

2,892.7

 

$

2,551.6

 

$

8,518.5

 

$

6,887.4

 

Industrial & Infrastructure

 

2,665.0

 

3,465.0

 

8,879.5

 

10,102.0

 

Government

 

675.2

 

790.1

 

2,101.0

 

2,511.5

 

Global Services

 

149.7

 

159.5

 

454.0

 

503.0

 

Power

 

301.6

 

169.9

 

1,107.2

 

550.5

 

Total external revenue

 

$

6,684.2

 

$

7,136.1

 

$

21,060.2

 

$

20,554.4

 

 

Intercompany revenue for the Global Services segment, excluded from the amounts shown above, was $128.0 million and $371.1 million for the three and nine months ended September 30, 2013, respectively, and $116.0 million and $341.8 million for the three and nine months ended September 30, 2012, respectively.

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

Segment Profit (Loss) (in millions)

 

2013

 

2012

 

2013

 

2012

 

Oil & Gas

 

$

108.3

 

$

87.2

 

$

319.6

 

$

244.7

 

Industrial & Infrastructure

 

132.4

 

145.0

 

388.7

 

389.6

 

Government

 

37.8

 

22.9

 

92.7

 

98.1

 

Global Services

 

24.5

 

29.2

 

79.8

 

100.4

 

Power

 

7.6

 

(6.0

)

11.4

 

(14.5

)

Total segment profit

 

$

310.6

 

$

278.3

 

$

892.2

 

$

818.3

 

 

Power segment profit for the three and nine months ended September 30, 2013 included research and development expenses of $12.7 million and $41.1 million, respectively, and $15.7 million and $40.6 million for the three and nine months ended September 30, 2012, respectively, associated with the operations of NuScale.

 

A reconciliation of the segment information to consolidated amounts is as follows:

 

 

 

Three Months Ended

 

Nine Months Ended

 

Reconciliation of Total Segment Profit to

 

September 30,

 

September 30,

 

Earnings Before Taxes (in millions)

 

2013

 

2012

 

2013

 

2012

 

Total segment profit

 

$

310.6

 

$

278.3

 

$

892.2

 

$

818.3

 

Corporate general and administrative expense

 

(46.1

)

(40.9

)

(110.6

)

(109.9

)

Interest income (expense), net

 

(3.7

)

(0.9

)

(8.9

)

2.8

 

Earnings attributable to noncontrolling interests

 

43.9

 

28.0

 

137.1

 

82.3

 

Earnings before taxes

 

$

304.7

 

$

264.5

 

$

909.8

 

$

793.5

 

 

Total assets by segment are as follows:

 

 

 

September 30,

 

December 31,

 

Total Assets (in millions)

 

2013

 

2012

 

Oil & Gas

 

$

1,871.8

 

$

1,704.4

 

Industrial & Infrastructure

 

965.5

 

751.7

 

Government

 

545.8

 

827.2

 

Global Services

 

729.7

 

768.9

 

Power

 

205.1

 

120.6

 

 

The increase in total assets for the Oil & Gas segment was due to higher levels of working capital needed to support the segment’s revenue growth. The increase in total assets for the Industrial & Infrastructure segment resulted primarily from the consolidation of a variable interest entity in the mining and metals business line during the first quarter of 2013, offset somewhat by a reduction in project working capital associated with the decrease in volume in the mining and metals business line. The decrease in total assets for the Government segment was primarily the result of reduced project working capital needs for LOGCAP IV. The increase in total assets for the Power segment was primarily due to an increase in working capital to support project execution activities.