Annual report pursuant to Section 13 and 15(d)

Business Segment Information

v3.8.0.1
Business Segment Information
 12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Business Segment Information
GEOGRAPHIC INFORMATION
The Company attributes revenues to customers based on the location of the customer. Information as to the Company’s operations in different geographical areas is as follows:
 
December 31,
 
2017
 
2016
Long-lived assets:
 

 
 

United States
$
343,344

 
$
306,908

Canada
17,082

 
16,454

Other
1,320

 
1,414

 Total long-lived assets
$
361,746

 
$
324,776

 
Year Ended December 31,
 
2017
 
2016
 
2015
Revenues:
 

 
 
 
 
United States
$
665,793

 
$
588,791

 
$
567,815

Canada
42,186

 
49,706

 
48,968

Other
9,173

 
12,730

 
14,049

 Total revenues
$
717,152

 
$
651,227

 
$
630,832

BUSINESS SEGMENT INFORMATION
The Company reports results under ASC 280, Segment Reporting. The Company’s reportable segments for the year ended December 31, 2017 are U.S. Regions, U.S. Federal, Canada and Non-Solar Distributed Generation (“DG”). The Company’s U.S. Regions, U.S. Federal and Canada segments offer energy efficiency products and services which include the design, engineering and installation of equipment and other measures to improve the efficiency and control the operation of a facility’s energy infrastructure, renewable energy solutions and services which include the construction of small-scale plants that the Company owns or develops for customers that produce electricity, gas, heat or cooling from renewable sources of energy and O&M services. The Company’s Non-solar DG segment sells electricity, processed renewable gas fuel, heat or cooling, produced from renewable sources of energy, other than solar, and generated by small-scale plants that the Company owns and O&M services for customer owned small-scale plants. The Company’s U.S. Regions segment also now includes certain small-scale solar grid-tie plants developed for customers previously included in our Non-solar DG segment. Previously reported amounts have been restated for comparative purposes. The “All Other” category offers enterprise energy management services, consulting services and the sale of solar PV energy products and systems which we refer to as integrated-PV. These segments do not include results of other activities, such as corporate operating expenses not specifically allocated to the segments.  Certain reportable segments are an aggregation of operating segments. For the years ended December 31, 2017, 2016 and 2015 unallocated corporate expenses were $27,195, $32,225 and $26,077, respectively. The accounting policies are the same as those described in the summary of significant accounting policies in Note 2. During the year ended December 31, 2016, the Company reserved for certain assets in its Canada segment totaling $1,934 due to collectability concerns as a result of its previously disclosed restructuring efforts. During the year ended December 31, 2016, the Company included in unallocated corporate activity $2,870 as a reserve for amounts payable from a customer who declared bankruptcy.
For the years ended December 31, 2017, 2016 and 2015 more than 77% of the Company’s revenues have been derived from federal, state, provincial or local government entities, including public housing authorities and public universities. The U.S. federal government, which is considered a single customer for reporting purposes, constituted 32.0%, 27.3% and 20.2% of the Company’s consolidated revenues for the years ended December 31, 2017, 2016 and 2015, respectively. Revenues from the U.S. federal government are included in the Company’s U.S. Federal segment.
The reports of the Company’s chief operating decision maker do not include assets at the operating segment level.
An analysis of the Company’s business segment information and reconciliation to the consolidated financial statements is as follows:
 
U.S. Regions
 
U.S. Federal
 
Canada
 
Non-solar DG
 
All Other
 
Total Consolidated
2017
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
290,196

 
$
229,146

 
$
43,803

 
$
79,220

 
$
74,787

 
$
717,152

Interest income
2

 
44

 
1

 
83

 
—

 
130

Interest expense
2,672

 
1,056

 
1,927

 
3,389

 
38

 
9,082

Depreciation and intangible asset amortization
2,974

 
2,623

 
1,178

 
15,259

 
1,881

 
23,915

Unallocated corporate activity
—

 
—

 
—

 
—

 
—

 
(27,195
)
Income before taxes, excluding unallocated corporate activity
13,865

 
29,261

 
1,751

 
8,115

 
2,920

 
55,912

2016
 
 
 
 
 
 
 
 
 
 
 
Revenues
276,766

 
178,005

 
50,448

 
74,395

 
71,613

 
651,227

Interest income
1

 
11

 
—

 
38

 
—

 
50

Interest expense
1,055

 
942

 
1,737

 
3,319

 
23

 
7,076

Depreciation and intangible asset amortization
1,901

 
2,588

 
1,090

 
14,557

 
2,628

 
22,764

Unallocated corporate activity
—

 
—

 
—

 
—

 
—

 
(32,225
)
Income (loss) before taxes, excluding unallocated corporate activity
19,802

 
22,246

 
(2,330
)
 
9,301

 
(427
)
 
48,592

2015
 
 
 
 
 
 
 
 
 
 
 
Revenues
306,086

 
127,620

 
49,235

 
61,626

 
86,265

 
630,832

Interest income
1

 
1

 
1,154

 
175

 
—

 
1,331

Interest expense
359

 
—

 
1,338

 
3,553

 
—

 
5,250

Depreciation and intangible asset amortization
1,823

 
1,209

 
1,081

 
13,331

 
4,078

 
21,522

Unallocated corporate activity
—

 
—

 
—

 
—

 
—

 
(26,077
)
Income (loss) before taxes, excluding unallocated corporate activity
25,856

 
16,676

 
(15,449
)
 
7,609

 
(8,323
)
 
26,369


Information as to the Company’s revenues by service and product lines is as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Revenues:
 
 
 
 
 
Project(1)
$
506,550

 
$
454,200

 
$
434,380

Energy Assets(2)
69,241

 
64,882

 
55,130

O&M(3)
60,574

 
63,082

 
59,117

Integrated-PV(4)
38,796

 
29,325

 
40,070

Other Services
41,991

 
39,738

 
42,135

Total Revenues
$
717,152

 
$
651,227

 
$
630,832

(1) Project revenues consists of services related to the design, engineering and installation of, and the arranging of financing for, equipment and other measures to improve the efficiency and control the operation of a facility’s energy infrastructure. Project revenues also include the construction for customers of small-scale plants that produce electricity, gas, heat or cooling from renewable sources of energy.
(2) Energy Assets revenues includes the sale of electricity, processed LFG, heat or cooling from plants that the Company owns.
(3) O&M revenues includes operations and maintenance services for customers as well as measurement and verification services related to our ESPCs.
(4) Integrated-PV revenues includes the sale of solar PV energy products and systems.