The following historical selected financial data has been derived from our consolidated financial statements. See Note 4 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. 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,
2018
2017
2016
2015
2014
(In thousands, except per share information)
Consolidated Statements of Operations Data:
Revenues
$
11,171,423
$
9,466,478
$
7,651,319
$
7,572,436
$
7,747,229
Cost of services (including depreciation)
9,691,459
8,224,618
6,637,519
6,648,771
6,578,435
Gross profit
1,479,964
1,241,860
1,013,800
923,665
1,168,794
Selling, general and administrative expenses
857,574
777,920
653,338
592,863
705,477
(c)
Amortization of intangible assets
43,994
32,205
31,685
34,848
34,257
Asset impairment charges (a)
49,375
58,057
7,964
58,451
—
Change in fair value of contingent consideration liabilities
(11,248
)
(5,171
)
—
—
—
Operating income
540,269
378,849
320,813
237,503
429,060
Interest expense
(36,945
)
(20,946
)
(14,887
)
(8,024
)
(4,765
)
Interest income
1,555
832
2,423
1,493
3,736
Other expense, net
(47,213
)
(4,978
)
(663
)
(2,297
)
(1,432
)
Income from continuing operations before income taxes
457,666
353,757
307,686
228,675
426,599
Provision for income taxes (b)
161,659
35,532
107,246
97,472
139,007
Net income from continuing operations
296,007
318,225
200,440
131,203
287,592
Net income (loss) from discontinued operations
—
—
(342
)
190,621
27,490
Net income
296,007
318,225
200,098
321,824
315,082
Less: Net income attributable to non-controlling interests
2,661
3,247
1,715
10,917
18,368
Net income attributable to common stock
$
293,346
$
314,978
$
198,383
$
310,907
$
296,714
Amounts attributable to common stock:
Net income from continuing operations
$
293,346
$
314,978
$
198,725
$
120,286
$
269,224
Net income (loss) from discontinued operations
—
—
(342
)
190,621
27,490
Net income attributable to common stock
$
293,346
$
314,978
$
198,383
$
310,907
$
296,714
Basic earnings per share attributable to common stock from continuing operations
$
1.92
$
2.02
$
1.26
$
0.62
$
1.22
Diluted earnings per share attributable to common stock from continuing operations
$
1.90
$
2.00
$
1.26
$
0.62
$
1.22
(a)
In 2018, 2017, 2016 and 2015, we recorded asset impairment charges of $49.4 million ($36.5 million net of tax), $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 2018 related to the winding down of certain oil-influenced operations and assets. 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 was associated with two reporting units within our Pipeline and Industrial 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 further discussion of these charges in 2018, 2017 and 2016, 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 effective tax rates in 2018 and 2017 were impacted by the enactment of the Tax Cuts and Jobs Act of 2017 (Tax Act), which, among other things, lowered the U.S. federal corporate tax rate from 35% to 21% as of January 1, 2018. The lower effective tax rate in 2017 was primarily due to $70.1 million of tax benefits related to the enactment of the Tax Act. For more information regarding the Tax Act, refer to Note 9 of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data. As a result of the tax reform regulations issued during 2018, the 2018 effective tax rate includes a $37.2 million provision to record a valuation allowance against tax benefits recognized during 2017 associated with the Tax Act and other entity restructuring and recapitalization efforts. For more information on other items that impacted the effective tax rates in 2018, 2017 and 2016, 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 rate in 2015 did not include a significant decrease in reserves for uncertain tax positions. The effective tax rate in 2014 was impacted by $8.1 million in tax benefits primarily due to decreases in reserves for uncertain tax positions that resulted 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.
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