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Operating Segment and Related Information | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Operating Segment and Related Information | 20. Operating Segment and Related Information The Company currently has two primary reportable geographic segments - United States and United Kingdom. The Company has eight reportable operating segments based on management’s organization of the enterprise - Construction, Marine Services, Energy, Telecommunications, Insurance, Life Sciences, Broadcasting, Other, and a Non-operating Corporate segment. Net revenue and long-lived assets by geographic segment is reported on the basis of where the entity is domiciled. All inter-segment revenues are eliminated. The Company's revenue concentrations of 10% and greater are as follows:
|  |  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | Segment |  | 2019 |  | 2018 |  | 2019 |  | 2018
Customer A |  | Telecommunications |  | 10.4% |  | 11.9% |  | 10.5% |  | 11.3%
Summary information with respect to the Company’s geographic and operating segments is as follows (in millions):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Net Revenue by Geographic Region |  |  |  |  |  |  |  |
United States |  | $ | 469.9 |  |  | $ | 423.0 |  |  | $ | 910.5 |  |  | $ | 835.4 |
United Kingdom |  | 38.8 |  |  | 65.4 |  |  | 81.0 |  |  | 101.8 |
Other |  | 9.9 |  |  | 8.4 |  |  | 18.5 |  |  | 13.3 |
Total |  | $ | 518.6 |  |  | $ | 496.8 |  |  | $ | 1,010.0 |  |  | $ | 950.5 |
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Net revenue |  |  |  |  |  |  |  |
Construction |  | $ | 195.7 |  |  | $ | 176.9 |  |  | $ | 387.8 |  |  | $ | 335.9 |
Marine Services |  | 39.4 |  |  | 68.4 |  |  | 81.8 |  |  | 105.1 |
Energy |  | 5.5 |  |  | 7.1 |  |  | 10.6 |  |  | 11.6 |
Telecommunications |  | 189.3 |  |  | 190.5 |  |  | 344.8 |  |  | 392.8 |
Insurance |  | 82.1 |  |  | 43.8 |  |  | 170.9 |  |  | 84.0 |
Broadcasting |  | 10.0 |  |  | 11.1 |  |  | 19.8 |  |  | 21.7 |
Other |  | — |  |  | 1.0 |  |  | — |  |  | 3.4 |
Eliminations (*) |  | (3.4 | ) |  | (2.0 | ) |  | (5.7 | ) |  | (4.0 | )
Total net revenue |  | $ | 518.6 |  |  | $ | 496.8 |  |  | $ | 1,010.0 |  |  | $ | 950.5 |
(*) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the three and six months ended June 30, 2019 and 2018 which are related to entities under common control which are eliminated or are reclassified in consolidation.
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Income (loss) from operations |  |  |  |  |  |  |  |
Construction |  | $ | 16.2 |  |  | $ | 11.8 |  |  | $ | 21.9 |  |  | $ | 17.9 |
Marine Services |  | (2.7 | ) |  | 2.8 |  |  | (6.8 | ) |  | — |
Energy |  | (0.3 | ) |  | 1.5 |  |  | (0.7 | ) |  | 0.9 |
Telecommunications |  | 0.2 |  |  | 1.1 |  |  | 0.8 |  |  | 2.1 |
Insurance |  | 30.9 |  |  | 4.0 |  |  | 65.3 |  |  | 6.9 |
Life Sciences |  | (1.8 | ) |  | (6.6 | ) |  | (3.6 | ) |  | (9.8 | )
Broadcasting |  | (1.7 | ) |  | (8.4 | ) |  | (5.0 | ) |  | (16.1 | )
Other |  | — |  |  | (1.2 | ) |  | — |  |  | (1.4 | )
Non-operating Corporate |  | (6.5 | ) |  | (8.5 | ) |  | (13.7 | ) |  | (15.8 | )
Eliminations (*) |  | (3.4 | ) |  | (2.0 | ) |  | (5.7 | ) |  | (4.0 | )
Total income (loss) from operations |  | $ | 30.9 |  |  | $ | (5.5 | ) |  | $ | 52.5 |  |  | $ | (19.3 | )
(*) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the three and six months ended June 30, 2019 and 2018 which are related to transactions between entities under common control which are eliminated or are reclassified in consolidation. A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in millions):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Income (loss) from operations |  | $ | 30.9 |  |  | $ | (5.5 | ) |  | $ | 52.5 |  |  | $ | (19.3 | )
Interest expense |  | (23.0 | ) |  | (17.2 | ) |  | (45.3 | ) |  | (36.5 | )
Gain on sale and deconsolidation of subsidiary |  | — |  |  | 102.1 |  |  | — |  |  | 102.1 |
Income from equity investees |  | 6.1 |  |  | 10.7 |  |  | 1.2 |  |  | 5.5 |
Gain on bargain purchase |  | 1.1 |  |  | — |  |  | 1.1 |  |  | — |
Other income (expense), net |  | (4.7 | ) |  | (0.9 | ) |  | (1.4 | ) |  | 0.2 |
Income from continuing operations |  | 10.4 |  |  | 89.2 |  |  | 8.1 |  |  | 52.0 |
Income tax expense |  | (1.2 | ) |  | (9.4 | ) |  | (5.2 | ) |  | (11.1 | )
Net income |  | 9.2 |  |  | 79.8 |  |  | 2.9 |  |  | 40.9 |
Less: Net (income) loss attributable to noncontrolling interest and redeemable noncontrolling interest |  | 0.2 |  |  | (24.4 | ) |  | 3.7 |  |  | (20.5 | )
Net income attributable to HC2 Holdings, Inc. |  | 9.4 |  |  | 55.4 |  |  | 6.6 |  |  | 20.4 |
Less: Preferred dividends, deemed dividends, and repurchase gains |  | 0.4 |  |  | 0.7 |  |  | (0.8 | ) |  | 1.4 |
Net income attributable to common stock and participating preferred stockholders |  | $ | 9.0 |  |  | $ | 54.7 |  |  | $ | 7.4 |  |  | $ | 19.0 |
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Depreciation and Amortization |  |  |  |  |  |  |  |
Construction |  | $ | 4.0 |  |  | $ | 1.7 |  |  | $ | 7.9 |  |  | $ | 3.2 |
Marine Services |  | 6.4 |  |  | 6.3 |  |  | 13.0 |  |  | 13.3 |
Energy |  | 1.5 |  |  | 1.3 |  |  | 2.9 |  |  | 2.7 |
Telecommunications |  | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  | 0.2 |
Insurance (*) |  | (6.0 | ) |  | (1.3 | ) |  | (12.5 | ) |  | (2.3 | )
Life Sciences |  | 0.1 |  |  | 0.1 |  |  | 0.1 |  |  | 0.1 |
Broadcasting |  | 1.5 |  |  | 0.8 |  |  | 2.9 |  |  | 1.5 |
Total |  | $ | 7.6 |  |  | $ | 9.0 |  |  | $ | 14.5 |  |  | $ | 18.7 |
(*) Balance includes amortization of negative VOBA, which increases net income.
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Capital Expenditures (*) |  |  |  |  |  |  |  |
Construction |  | $ | 2.8 |  |  | $ | 2.9 |  |  | $ | 5.4 |  |  | $ | 4.1 |
Marine Services |  | 5.1 |  |  | 7.5 |  |  | 8.2 |  |  | 14.1 |
Energy |  | 0.2 |  |  | 0.4 |  |  | 0.3 |  |  | 1.2 |
Telecommunications |  | — |  |  | — |  |  | — |  |  | 0.1 |
Insurance |  | — |  |  | — |  |  | 0.2 |  |  | 0.3 |
Life Sciences |  | — |  |  | — |  |  | — |  |  | 0.1 |
Broadcasting |  | 4.7 |  |  | 0.2 |  |  | 5.1 |  |  | 0.3 |
Total |  | $ | 12.8 |  |  | $ | 11.0 |  |  | $ | 19.2 |  |  | $ | 20.2 |
(*) The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations.
|  | June 30, 2019 |  | December 31, 2018
Investments |  |  |  |
Construction |  | $ | 0.9 |  |  | $ | 0.9 |
Marine Services |  | 65.9 |  |  | 58.3 |
Insurance |  | 4,213.7 |  |  | 3,821.4 |
Life Sciences |  | 15.7 |  |  | 16.3 |
Other |  | 3.3 |  |  | 5.6 |
Eliminations |  | (101.4 | ) |  | (80.5 | )
Total |  | $ | 4,198.1 |  |  | $ | 3,822.0 |
|  | June 30, 2019 |  | December 31, 2018
Property, plant and equipment, net |  |  |  |
United States |  | $ | 223.8 |  |  | $ | 178.2 |
United Kingdom |  | 187.6 |  |  | 192.7 |
Other |  | 5.0 |  |  | 5.4 |
Total |  | $ | 416.4 |  |  | $ | 376.3 |
|  | June 30, 2019 |  | December 31, 2018
Total Assets |  |  |  |
Construction |  | $ | 535.0 |  |  | $ | 537.9 |
Marine Services |  | 380.6 |  |  | 368.6 |
Energy |  | 122.1 |  |  | 77.6 |
Telecommunications |  | 122.5 |  |  | 139.9 |
Insurance |  | 5,517.5 |  |  | 5,213.1 |
Life Sciences |  | 38.3 |  |  | 35.6 |
Broadcasting |  | 245.2 |  |  | 202.8 |
Other |  | 3.4 |  |  | 5.6 |
Non-operating Corporate |  | 20.0 |  |  | 9.2 |
Eliminations |  | (101.4 | ) |  | (86.5 | )
Total |  | $ | 6,883.2 |  |  | $ | 6,503.8 |

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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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