Operating Segment and Related Information (Tables)

6 Months Ended

Jun. 30, 2019

Schedules of Concentration of Risk, by Risk Factor

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 of Company's Geographic and Operating Segments

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.

Segment Reporting for Long-term investments, Property and Equipment - Net and Assets



	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