Note 17 - Business Segments
 3 Months Ended
Nov. 30, 2011
Segment Reporting Disclosure [Text Block]
Note 17 — Business Segments

Our reportable segments are Power; Plant Services; Environmental and Infrastructure (E&I); Energy and Chemicals (E&C); Fabrication and Manufacturing (F&M); Investment in Westinghouse; and Corporate.

The Power segment provides a range of project-related services, including design, engineering, construction, procurement, technology and consulting services, primarily to the global fossil and nuclear power generation industries.

The Plant Services segment performs routine and outage/turnaround maintenance, predictive and preventative maintenance, as well as construction and major modification services, to clients’ facilities in the fossil and nuclear power generation industries and industrial markets primarily in North America.

The E&I segment provides integrated engineering, design, construction and program and construction management services and executes environmental remediation solutions primarily to the U.S. government, state/local government agencies and private-sector clients worldwide.

The E&C segment provides a range of project-related services, including design, engineering, construction, procurement, technology and consulting services, primarily to the oil and gas, refinery, petrochemical and chemical industries.

The F&M segment provides integrated fabricated piping systems and services for new construction, site expansion and retrofit projects for power generating energy, chemical and petrochemical plants.  We operate several pipe and steel fabrication facilities in the U.S. and abroad.  We also operate two manufacturing facilities that provide pipe fittings for our pipe fabrication services operations, as well as to third parties. In addition, we operate several distribution centers in the U.S., which distribute our products to clients.

The Investment in Westinghouse segment includes NEH’s Westinghouse Equity and the Westinghouse Bonds. Westinghouse serves the domestic and international nuclear electric power industry by supplying advanced nuclear plant designs and equipment, fuel and a wide range of other products and services to the owners and operators of nuclear power plants. Please see Note 6 – Investment in Westinghouse and Related Agreements, Note 7 – Equity Method Investments and Variable Interest Entities and Note 9 – Debt and Revolving Lines of Credit for additional information.

The Corporate segment includes corporate management and expenses associated with managing the overall company. These expenses include compensation and benefits of corporate management and staff, legal and professional fees and administrative and general expenses that are not directly associated with the other segments. Our Corporate assets primarily include cash, cash equivalents and short-term investments held by the corporate entities, property and equipment related to the corporate facility and certain information technology assets.

The following tables present certain financial information for our segments for the three months ended November 30, 2011 and November 30, 2010 (in millions except percentages):

   
Three Months Ended
 
   
2011
   
2010
 
Revenues:
           
Power
  $ 494.7     $ 505.0  
Plant Services
    295.1       257.8  
E&I
    459.4       518.6  
E&C
    163.1       178.3  
F&M
    105.3       83.6  
Corporate
    —       —  
Total revenues
  $ 1,517.6     $ 1,543.3  
Gross profit:
               
Power
  $ 27.0     $ (29.5 )
Plant Services
    23.0       23.3  
E&I
    37.7       48.4  
E&C
    15.3       6.3  
F&M
    16.5       12.1  
Corporate
    0.4       1.0  
Total gross profit
  $ 119.9     $ 61.6  
                 
Gross profit percentage:
               
Power
    5.5 %     (5.8 )%
Plant Services
    7.8       9.0  
E&I
    8.2       9.3  
E&C
    9.4       3.5  
F&M
    15.7       14.5  
Corporate
 
NM
   
NM
 
Total gross profit percentage
    7.9 %     4.0 %
                 
Selling, general and administrative expenses:
               
Power
  $ 9.7     $ 11.6  
Plant Services
    2.5       2.1  
E&I
    18.4       18.2  
E&C
    12.1       12.7  
F&M
    9.2       7.7  
Investment in Westinghouse
    0.2       0.1  
Corporate
    17.4       18.5  
Total selling, general and administrative expense
  $ 69.5     $ 70.9  
                 
Income (loss) before income taxes and earnings from unconsolidated entities:
               
Power
  $ 17.6     $ (41.2 )
Plant Services
    20.5       21.2  
E&I
    19.6       30.8  
E&C
    4.6       (5.0 )
F&M
    8.5       4.2  
Investment in Westinghouse
    14.6       (23.0 )
Corporate
    (17.0 )     (16.8 )
Total income (loss) before income taxes and earnings from unconsolidated entities
  $ 68.4     $ (29.8 )

____________

NM — Not Meaningful

Our segments’ assets were as follows (in millions):

   
November 30,
2011
   
August 31,
2011
 
Assets
           
Power
  $ 2,061.4     $ 2,129.0  
Plant Services
    293.4       270.2  
E&I
    1,056.0       1,060.9  
E&C
    412.6       482.9  
F&M
    686.4       710.0  
Investment in Westinghouse
    1,236.5       1,266.4  
Corporate
    441.5       404.3  
Total segment assets
    6,187.8       6,323.7  
Elimination of investment in consolidated subsidiaries
    (468.4 )     (368.3 )
Elimination of intercompany receivables
    (477.9 )     (468.4 )
Income taxes not allocated to segments
    —       —  
Total consolidated assets
  $ 5,241.5     $ 5,487.0  

Major Clients

Revenues related to U.S. government agencies or entities owned by the U.S. government were approximately $320.7 million and $312.7 for the three months ended November 30, 2011 and 2010, respectively, representing approximately 21% and 20% of our total revenues, respectively.