Annual report pursuant to Section 13 and 15(d)

Business Segment Information

v3.6.0.2
Business Segment Information
 12 Months Ended
Dec. 31, 2016
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,
 
2016
 
2015
Long-lived assets:
 

 
 

United States
$
306,908

 
$
235,298

Canada
16,454

 
14,233

Other
1,414

 
106

 Total long-lived assets
$
324,776

 
$
249,637

 
Year Ended December 31,
 
2016
 
2015
 
2014
Revenues:
 

 
 
 
 
United States
$
588,791

 
$
567,815

 
$
509,200

Canada
49,706

 
48,968

 
70,069

Other
12,730

 
14,049

 
13,972

 Total revenues
$
651,227

 
$
630,832

 
$
593,241

BUSINESS SEGMENT INFORMATION
The Company reports results under ASC 280, Segment Reporting. The Company’s reportable segments for the year ended December 31, 2016 are U.S. Regions, U.S. Federal, Canada and Small-Scale Infrastructure. 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 for customers that produce electricity, gas, heat or cooling from renewable sources of energy and O&M services. The Company’s Small-Scale Infrastructure segment sells electricity, processed landfill gas (“LFG”), heat or cooling, produced from renewable sources of energy, from small-scale plants that the Company owns and the construction of small-scale plants for customers. The Company’s Small-Scale Infrastructure segment also now includes certain small-scale plants developed for customers previously included in our U.S. Regions 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, 2016, 2015 and 2014 unallocated corporate expenses were $32,181, $25,671 and $27,621, 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, 2016, 2015 and 2014 more than 75% 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 27.3%, 20.2% and 17.9% of the Company’s consolidated revenues for the years ended December 31, 2016, 2015 and 2014, 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
 
Small-Scale Infrastructure
 
All Other
 
Total Consolidated
2016
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
269,766

 
$
177,991

 
$
50,448

 
$
81,395

 
$
71,627

 
$
651,227

Interest income
—

 
11

 
—

 
38

 
—

 
49

Interest expense
—

 
942

 
1,737

 
4,386

 
23

 
7,088

Depreciation and intangible asset amortization
490

 
2,588

 
1,090

 
16,004

 
2,628

 
22,800

Unallocated corporate activity
—

 
—

 
—

 
—

 
—

 
(32,181
)
Income (loss) before taxes, excluding unallocated corporate activity
18,200

 
22,236

 
(2,330
)
 
10,859

 
(417
)
 
48,548

2015
 
 
 
 
 
 
 
 
 
 
 
Revenues
301,371

 
127,620

 
49,235

 
66,322

 
86,284

 
630,832

Interest income
—

 
—

 
1,154

 
175

 
—

 
1,329

Interest expense
—

 
—

 
1,338

 
3,912

 
—

 
5,250

Depreciation and intangible asset amortization
838

 
1,209

 
1,081

 
14,316

 
4,078

 
21,522

Unallocated corporate activity
—

 
—

 
—

 
—

 
—

 
(25,671
)
Income (loss) before taxes, excluding unallocated corporate activity
24,800

 
16,676

 
(15,449
)
 
8,613

 
(8,677
)
 
25,963

2014
 
 
 
 
 
 
 
 
 
 
 
Revenues
263,451

 
106,192

 
70,492

 
58,286

 
94,820

 
593,241

Interest income
—

 
—

 
1

 
43

 
1

 
45

Interest expense
—

 
—

 
1,369

 
3,188

 
—

 
4,557

Depreciation and intangible asset amortization
1,352

 
1,178

 
1,288

 
12,892

 
4,199

 
20,909

Unallocated corporate activity
—

 
—

 
—

 
—

 
—

 
(27,621
)
Income (loss) before taxes, excluding unallocated corporate activity
24,849

 
14,035

 
(7,838
)
 
3,191

 
(324
)
 
33,913


Information as to the Company’s revenues by service and product lines is as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Revenues:
 
 
 
 
 
Project(1)
$
454,200

 
$
434,380

 
$
386,816

Operating Assets(2)
64,882

 
55,130

 
51,756

O&M(3)
63,082

 
59,117

 
59,424

Integrated-PV(4)
29,325

 
40,070

 
51,200

Other Services
39,738

 
42,135

 
44,045

Total Revenues
$
651,227

 
$
630,832

 
$
593,241

(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) Operating 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.