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Segment Information
12 Months Ended
Dec. 31, 2019
Segment Information  
Segment Information

16. Segment Information

MYR Group is a holding company of specialty contractors serving electrical utility infrastructure and commercial construction markets in the United States and western Canada. The Company has two reporting segments, each a separate operating segment, which are referred to as T&D and C&I. Performance measurement and resource allocation for the reporting segments are based on many factors. The primary financial measures used to evaluate the segment information are contract revenues and income from operations, excluding general corporate expenses. General corporate expenses include corporate facility and staffing costs, which includes safety costs, professional fees, IT expenses and management fees.

Transmission and Distribution:   The T&D segment provides a broad range of services on electric transmission and distribution networks and substation facilities which include design, engineering, procurement, construction, upgrade, maintenance and repair services with a particular focus on construction, maintenance and repair. T&D services include the construction and maintenance of high voltage transmission lines, substations and lower voltage underground and overhead distribution systems. The T&D segment also provides emergency restoration services in response to hurricane, ice or other storm-related damage. T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors.

Commercial and Industrial:   The C&I segment provides services including the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of bridge, roadway and tunnel lighting. Typical C&I contracts cover electrical contracting services for airports, hospitals, data centers, hotels, stadiums, convention centers, renewable energy projects, manufacturing plants, processing facilities, waste-water treatment facilities, mining facilities and transportation control and management systems. The C&I segment generally provides electric construction and maintenance services as a subcontractor to general contractors in the C&I industry, but also contracts directly with facility owners.

The information in the following table is derived from the segment’s internal financial reports used for corporate management purposes:

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31,

(in thousands)

    

2019

    

2018

    

2017

Contract revenues:

 

 

  

 

 

  

 

 

  

T&D

 

$

1,134,411

 

$

893,108

 

$

879,372

C&I

 

 

936,748

 

 

638,061

 

 

523,945

 

 

$

2,071,159

 

$

1,531,169

 

$

1,403,317

Income from operations:

 

 

  

 

 

  

 

 

  

T&D

 

$

73,580

 

$

57,242

 

$

39,631

C&I

 

 

30,506

 

 

34,112

 

 

25,048

General Corporate

 

 

(46,908)

 

 

(41,042)

 

 

(35,121)

 

 

$

57,178

 

$

50,312

 

$

29,558

 

The Company does not identify capital expenditures and total assets by segment in its internal financial reports due in part to the shared use of a centralized fleet of vehicles and specialized equipment. Identifiable assets, consisting of contract receivables, contract assets, construction materials inventory, goodwill and intangibles for each segment are as follows as of December 31:

 

 

 

 

 

 

 

 

(in thousands)

    

2019

    

2018

T&D

 

$

306,226

 

$

274,038

C&I

 

 

414,264

 

 

257,049

General Corporate

 

 

287,381

 

 

217,668

 

 

$

1,007,871

 

$

748,755

 

An allocation of total depreciation, including depreciation of shared construction equipment, and amortization to each segment is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 

(in thousands)

    

2019

    

2018

    

2017

Depreciation and amortization

 

 

  

 

 

  

 

 

  

T&D

 

$

35,711

 

$

33,977

 

$

34,990

C&I

 

 

8,805

 

 

5,936

 

 

3,586

 

 

$

44,516

 

$

39,913

 

$

38,576

 

For the years ended December 31, 2019, 2018 and 2017 the Company had Canadian contract revenues of $79.5 million, $53.8 million and $84.1 million, respectively. Canadian contract revenues for the years ended December 31, 2019, 2018 and 2017 were predominantly in the C&I segment. As of December 31, 2019 and 2018, there were $24.8 million and $20.5 million, respectively, of identifiable assets attributable to Canadian operations.