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Operating Information by Segment and Geographic Area | 9 Months Ended
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Sep. 30, 2019
Segment Reporting [Abstract] |
Operating Information by Segment and Geographic Area | Operating Information by Segment and Geographic Area During the third quarter of 2019, management committed to a plan to sell substantially all of its government and equipment ("AMECO") businesses, while retaining two fixed price government projects (for which the U.S. government is either the client or the ultimate client) and a few small international components of AMECO. The results of the government and AMECO businesses that are expected to be sold have been presented as earnings from discontinued operations, net of tax, in the Condensed Consolidated Statement of Operations for all periods presented. See Note 21 for further discussion of the company's discontinued operations. Also during the third quarter of 2019, management reviewed its business lines, markets and geographies and changed the composition of its reportable segments to align them with the manner in which the chief executive officer manages the business and allocates resources. The Mining, Industrial, Infrastructure & Power segment was separated into a Mining & Industrial segment and an Infrastructure & Power segment. The operations of NuScale, as well as two U.S. government projects that do not qualify for discontinued operations reporting, were combined into a newly created segment called Other. The company now reports its operating results in the following five reportable segments: Energy & Chemicals; Mining & Industrial; Infrastructure & Power; Diversified Services; and Other. Segment operating information and assets for 2018 have been recast to reflect these changes. Operating information by reportable segment is as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
External Revenue (in millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Energy & Chemicals |  | $ | 1,611.6 |  |  | $ | 1,902.3 |  |  | $ | 4,485.2 |  |  | $ | 5,859.8 |
Mining & Industrial |  | 1,374.0 |  |  | 973.3 |  |  | 3,703.6 |  |  | 2,377.4 |
Infrastructure & Power |  | 392.5 |  |  | 412.3 |  |  | 951.8 |  |  | 1,250.6 |
Diversified Services |  | 521.7 |  |  | 526.3 |  |  | 1,525.0 |  |  | 1,706.9 |
Other |  | 37.9 |  |  | 28.0 |  |  | (43.4 | ) |  | 73.6 |
Total external revenue |  | $ | 3,937.7 |  |  | $ | 3,842.2 |  |  | $ | 10,622.2 |  |  | $ | 11,268.3 |
Intercompany revenue for the Diversified Services segment, excluded from the amounts shown above, was $81 million and $253 million for the three and nine months ended September 30, 2019, respectively, and $73 million and $257 million for the three and nine months ended September 30, 2018, respectively. Segment profit is an earnings measure that the company utilizes to evaluate and manage its business performance. Segment profit is calculated as revenue less cost of revenue and earnings attributable to noncontrolling interests excluding: corporate general and administrative expense; impairment, restructuring and other exit costs; interest expense; interest income; domestic and foreign income taxes; and other non-operating income and expense items.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Segment Profit (Loss) (in millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Energy & Chemicals |  | $ | 84.9 |  |  | $ | 50.2 |  |  | $ | (124.9 | ) |  | $ | 253.0 |
Mining & Industrial |  | 56.9 |  |  | 20.9 |  |  | 129.1 |  |  | 56.9 |
Infrastructure & Power |  | 1.0 |  |  | 102.3 |  |  | (193.3 | ) |  | (13.2 | )
Diversified Services |  | 10.8 |  |  | 22.6 |  |  | 22.4 |  |  | 51.5 |
Other |  | (95.8 | ) |  | (22.9 | ) |  | (370.0 | ) |  | (71.2 | )
Total segment profit (loss) |  | $ | 57.8 |  |  | $ | 173.1 |  |  | $ | (536.7 | ) |  | $ | 277.0 |
Energy & Chemicals. Segment profit for the nine months ended September 30, 2019 included pre-tax charges associated with forecast revisions on certain projects including $240 million (or $1.40 per diluted share) resulting from late design changes, schedule-driven cost growth including liquidated damages, and subcontractor negotiations on a fixed-price, offshore project, $87 million (or $0.50 per diluted share) resulting from schedule-driven cost growth and client and subcontractor negotiations on two fixed-price, downstream projects and scope reductions on a large upstream project, $31 million (or $0.22 per diluted share) resulting from the resolution of certain close-out matters with a customer, and $26 million (or $0.19 per diluted share) resulting from the write-off of pre-contract cost due to the continued evaluation of the probability of receiving an award. Segment profit for the three and nine months ended September 30, 2018 included pre-tax charges totaling $46 million (or $0.30 per diluted share) and $113 million (or $0.77 per diluted share), respectively, for estimated cost growth on a completed, fixed-price downstream project. Infrastructure & Power. Segment profit for the nine months ended September 30, 2019 included pre-tax charges associated with forecast revisions on several projects including $135 million (or $0.96 per diluted share) resulting from the settlement of client disputes, as well as cost growth related to close-out matters, on three fixed-price, gas-fired power plant projects that are substantially complete as of September 30, 2019 and $55 million (or $0.39 per diluted share) resulting from late engineering changes and schedule-driven cost growth, as well as negotiations with clients and subcontractors on pending change orders, for several infrastructure projects. Segment profit for both the three and nine months ended September 30, 2018 included a gain of $125 million (or $0.68 per diluted share) on the sale of a joint venture interest in the United Kingdom. Segment profit for the three and nine months ended September 30, 2018 also included pre-tax charges of $35 million (or $0.19 per diluted share) and $177 million (or $0.96 per diluted share) resulting from cost growth at one of the gas-fired power plant projects discussed above. Other. Segment loss for both the three and nine months ended September 30, 2019 included pre-tax charges totaling $59 million (or $0.42 per diluted share) resulting from forecast revisions for cost growth on the Warren project, a weapons storage and maintenance facility that commenced earlier this year. Segment loss for the three months ended September 30, 2019 also included pre-tax charges totaling $20 million (or $0.14 per diluted share) resulting from estimated cost growth related to the Radford project, a plant for which the company serves as a subcontractor to a commercial client. Segment loss for the nine months ended September 30, 2019 included pre-tax charges totaling $253 million (or $1.80 per diluted share) resulting from forecast revisions for late engineering changes, cost growth and ongoing assessments of certain unapproved change orders related to the Radford project. The company’s forecast for both projects is based on its assessment of the probable cost to finish the projects as well as its assessment of the recovery of unapproved change orders. The company's Warren project requires the procurement and installation of certain first-of-a-kind technologies that are inherently more difficult to estimate. If the company's forecasts for these projects are not achieved, revenue and segment profit could be further adversely affected. The company continues to pursue recovery of all unapproved change orders associated with these projects. Segment loss for all periods included the operations of NuScale, which are primarily for research and development activities associated with the licensing and commercialization of small modular nuclear reactor technology. A discussion of the cost-sharing agreement between NuScale and the U.S. Department of Energy (“DOE”) is provided in the Notes to Consolidated Financial Statements included in the 2018 10-K. NuScale expenses included in the determination of segment profit were $14 million and $48 million for the three and nine months ended September 30, 2019, respectively, and $18 million and $65 million for the three and nine months ended September 30, 2018, respectively. NuScale expenses were reported net of qualified reimbursable expenses of $16 million and $43 million for the three and nine months ended September 30, 2019, respectively, and $15 million and $42 million for the three and nine months ended September 30, 2018, respectively. The company did not provide funding to NuScale during the third quarter of 2019. A reconciliation of total segment profit (loss) to earnings (loss) from continuing operations before taxes is as follows:
Reconciliation of Total Segment Profit (Loss) to Earnings (Loss) from Continuing Operations Before Taxes |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Total segment profit (loss) |  | $ | 57.8 |  |  | $ | 173.1 |  |  | $ | (536.7 | ) |  | $ | 277.0 |
Corporate general and administrative expense |  | (10.4 | ) |  | (61.1 | ) |  | (115.4 | ) |  | (134.7 | )
Impairment, restructuring and other exit costs |  | (334.0 | ) |  | — |  |  | (388.0 | ) |  | — |
Interest income (expense), net |  | (5.0 | ) |  | (14.7 | ) |  | (15.9 | ) |  | (33.3 | )
Earnings (loss) attributable to noncontrolling interests from continuing operations |  | 10.3 |  |  | 14.2 |  |  | (18.9 | ) |  | 31.5 |
Earnings (loss) from continuing operations before taxes |  | $ | (281.3 | ) |  | $ | 111.5 |  |  | $ | (1,074.9 | ) |  | $ | 140.5 |
Total assets by segment are as follows:
Total Assets by Segment (in millions) |  | September 30, 2019 |  | December 31, 2018
Energy & Chemicals |  | $ | 1,170.5 |  |  | $ | 1,525.1 |
Mining & Industrial |  | 547.5 |  |  | 694.8 |
Infrastructure & Power |  | 439.0 |  |  | 498.4 |
Diversified Services |  | 1,322.2 |  |  | 1,414.6 |
Other |  | 46.3 |  |  | 104.6 |
Corporate |  | 3,361.0 |  |  | 3,513.9 |
Total assets in the Energy & Chemicals segment as of September 30, 2019 also included aged and disputed accounts receivable of $108 million related to a cost reimbursable, chemicals project in the Middle East. Management continues to pursue collection of these amounts from the customer and does not believe that the customer has a contractual basis for withholding payment. The company does not believe it is probable that losses will be incurred in excess of amounts reserved for this matter. Corporate assets as of September 30, 2019 included accounts receivable related to two subcontracts with Westinghouse Electric Company LLC ("Westinghouse") to manage the construction workforce at two nuclear power plant projects in South Carolina ("V.C. Summer") and Georgia ("Plant Vogtle"). On March 29, 2017, Westinghouse filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court, Southern District of New York. In the third quarter of 2017, the V.C. Summer project was canceled by the owner. In the fourth quarter of 2017, the remaining scope of work on the Plant Vogtle project was transferred to a new contractor. In addition to amounts due for post-petition services, total assets as of September 30, 2019 included amounts due of $66 million and $2 million for services provided to the V.C. Summer and Plant Vogtle projects, respectively, prior to the date of the bankruptcy petition. The company has filed mechanic's liens in South Carolina against the property of the owner of the V.C. Summer project for amounts due for pre-petition services rendered to Westinghouse. Based on the company's evaluation of available information, the company does not expect the close-out of these projects to have a material unfavorable impact on the company's results of operations. The following table presents revenue disaggregated by the geographic area where the work was performed for the three and nine months ended September 30, 2019 and 2018:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
External Revenue (in millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
United States |  | $ | 1,287.7 |  |  | $ | 1,292.6 |  |  | $ | 3,434.3 |  |  | $ | 4,466.3 |
Canada |  | 379.8 |  |  | 77.7 |  |  | 880.6 |  |  | 182.1 |
Asia Pacific (includes Australia) |  | 489.1 |  |  | 413.5 |  |  | 1,390.9 |  |  | 1,042.1 |
Europe |  | 839.1 |  |  | 1,268.8 |  |  | 2,400.5 |  |  | 3,544.3 |
Central and South America |  | 736.6 |  |  | 464.5 |  |  | 1,841.4 |  |  | 1,038.4 |
Middle East and Africa |  | 205.4 |  |  | 325.1 |  |  | 674.5 |  |  | 995.1 |
Total external revenue |  | $ | 3,937.7 |  |  | $ | 3,842.2 |  |  | $ | 10,622.2 |  |  | $ | 11,268.3 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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