The following historical selected financial data has been derived from our consolidated financial statements. See Note 5 of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data for information regarding certain acquisitions and the related impact on our results of operations as these acquisitions may affect the comparability of such results. Additionally, on August 4, 2015, we sold our fiber optic licensing operations. We have presented the results of operations, financial position and cash flows of such fiber optic licensing subsidiaries as discontinued operations for all applicable periods presented in this Annual Report on Form 10-K. The historical selected financial data should be read in conjunction with our Consolidated Financial Statements and related notes thereto included in Item 8. Financial Statements and Supplementary Data and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Year Ended December 31,
2017
2016
2015
2014
2013
(In thousands, except per share information)
Consolidated Statements of Operations Data:
Revenues
$
9,466,478
$
7,651,319
$
7,572,436
$
7,747,229
$
6,411,577
Cost of services (including depreciation)
8,224,618
6,637,519
6,648,771
6,578,435
5,424,644
Gross profit
1,241,860
1,013,800
923,665
1,168,794
986,933
Selling, general and administrative expenses
777,920
653,338
592,863
705,477
(c)
485,069
Amortization of intangible assets
32,205
31,685
34,848
34,257
25,865
Asset impairment charges (a)
58,057
7,964
58,451
—
—
Change in fair value of contingent consideration liabilities
(5,171
)
—
—
—
—
Operating income
378,849
320,813
237,503
429,060
475,999
Interest expense
(20,946
)
(14,887
)
(8,024
)
(4,765
)
(2,668
)
Interest income
832
2,423
1,493
3,736
3,378
Other income (expense), net
(4,978
)
(663
)
(2,297
)
(1,432
)
111,611
(d)
Income from continuing operations before income taxes
353,757
307,686
228,675
426,599
588,320
Provision for income taxes (b)
35,532
107,246
97,472
139,007
196,875
Net income from continuing operations
318,225
200,440
131,203
287,592
391,445
Net income (loss) from discontinued operations
—
(342
)
190,621
27,490
29,864
Net income
318,225
200,098
321,824
315,082
421,309
Less: Net income attributable to non-controlling interests
3,247
1,715
10,917
18,368
19,388
Net income attributable to common stock
$
314,978
$
198,383
$
310,907
$
296,714
$
401,921
Amounts attributable to common stock:
Net income from continuing operations
$
314,978
$
198,725
$
120,286
$
269,224
$
372,057
Net income (loss) from discontinued operations
—
(342
)
190,621
27,490
29,864
Net income attributable to common stock
$
314,978
$
198,383
$
310,907
$
296,714
$
401,921
Basic earnings per share attributable to common stock from continuing operations
$
2.02
$
1.26
$
0.62
$
1.22
$
1.73
Diluted earnings per share attributable to common stock from continuing operations
$
2.00
$
1.26
$
0.62
$
1.22
$
1.73
(a)
In 2017, 2016 and 2015, we recorded asset impairment charges of $58.1 million ($36.6 million net of tax), $8.0 million ($7.1 million net of tax) and $58.5 million ($44.6 million net of tax). The charges recorded in 2017 related to goodwill and intangible assets, including a $57.0 million goodwill impairment and a $1.1 million impairment of a customer relationship intangible asset. The goodwill impairment is associated with two reporting units within our Oil and Gas Infrastructure Services Division. The charges recorded in 2016 primarily related to a pending disposition of certain international renewable energy services operations, which was completed in 2017. The charges recorded in 2015 related to goodwill, intangible assets and property and equipment, including a $39.8 million goodwill impairment and a $12.1 million impairment to customer relationship, trade name and non-compete agreement intangible assets. For a discussion of these charges, refer to Results of Operations - Consolidated Results - Asset impairment charges included in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
(b)
The low effective tax rate in 2017 was primarily due to $70.1 million of tax benefits related to the enactment of the Tax Cuts and Jobs Act (Tax Act) on December 22, 2017. For more information and the status of our provisional analysis of the Tax Act, refer to Note 10 of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data. For more information on other items that impacted the effective tax rates in 2017, 2016 and 2015, refer to Results of Operations - Consolidated Results - Provision for income taxes included in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The effective tax rates in 2014 and 2013 were impacted by $8.1 million and $9.9 million in tax benefits primarily due to decreases in reserves for uncertain tax positions resulting from the expiration of federal and state statute of limitations periods.
(c)
In 2014, selling, general and administrative expenses included a $102.5 million charge to provision for long-term contract receivable associated with an electric power infrastructure services project and a $38.8 million expense resulting from an arbitration decision associated with a contract dispute on a directional drilling project.
(d)
In 2013, we recorded a pre-tax gain of approximately $112.7 million from the sale of all of our equity ownership interest in Howard Midstream Energy Partners, LLC.
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