View Filing Data

Print Document View Excel Document

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2014	Feb. 28, 2015	Jun. 30, 2014
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Trading Symbol	HCHC
Entity Registrant Name	HC2 Holdings, Inc.
Entity Central Index Key	0001006837
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		23,815,216
Entity Public Float			$ 87,890,040

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Statement [Abstract]
Services revenue	$ 193,044	$ 230,686	$ 302,959
Sales revenue	350,158
Net revenue	543,202	230,686	302,959
Operating expenses:
Cost of revenue-services	174,956	220,315	285,631
Cost of revenue-sales	296,530
Selling, general and administrative	81,396	34,692	45,202
Depreciation and amortization	4,617	12,032	3,204
(Gain) loss on sale or disposal of assets	(162)	(8)	520
Asset impairment expense	291	2,791	20,298
Total operating expenses	557,628	269,822	354,855
Loss from operations	(14,426)	(39,136)	(51,896)
Interest expense	(10,754)	(8)	(27)
Amortization of debt discount	(1,593)	(86)	(201)
Loss on early extinguishment or restructuring of debt	(11,969)	(21,124)	(21,682)
Gain from contingent value rights valuation		14,904	1,292
Interest income and other expense, net	436	(226)	90
Foreign currency transaction gain (loss)	1,061	(588)	2,538
Loss from continuing operations before income taxes and income (loss) from equity investees	(37,245)	(25,054)	(48,003)
Income from equity investees	3,359
Income tax (expense) benefit	24,484	7,442	3,132
Loss from continuing operations	(9,402)	(17,612)	(44,871)
Loss from discontinued operations	(25)	(19,621)	(21,525)
Gain (loss) from sale of discontinued operations	(121)	148,839	94,265
Net income (loss)	(9,548)	111,606	27,869
Less: Net (income) loss attributable to noncontrolling interest	(2,559)		18
Net income (loss) attributable to HC2 Holdings, Inc.	(12,107)	111,606	27,887
Less: Preferred stock dividends and accretion	2,049
Net income (loss) attributable to common stock and participating preferred stockholders	$ (14,156)	$ 111,606	$ 27,887
Basic income (loss) per common share:
Loss from continuing operations attributable to HC2 Holdings, Inc.	$ (0.71)	$ (1.25)	$ (3.24)
Loss from discontinued operations		(1.40)	(1.55)
Gain (loss) from sale of discontinued operations	(0.01)	10.60	6.81
Net income (loss) attributable to HC2 Holdings, Inc.	(0.72)	7.95	2.02
Diluted income (loss) per common share:
Loss from continuing operations attributable to HC2 Holdings, Inc.	(0.71)	(1.25)	(3.24)
Loss from discontinued operations		(1.40)	(1.55)
Gain (loss) from sale of discontinued operations	(0.01)	10.60	6.81
Net income (loss) attributable to HC2 Holdings, Inc.	$ (0.72)	$ 7.95	$ 2.02
Weighted average common shares outstanding:
Basic	19,729	14,047	13,844
Diluted	19,729	14,047	13,844
Dividends declared per basic weighted average common shares outstanding		$ 8.58	$ 4.09
Amounts attributable to common shareholders of HC2 Holdings, Inc.
Loss from continuing operations attributable to HC2 Holdings, Inc.	$ (14,010)	$ (17,612)	$ (44,853)
Loss from discontinued operations	(25)	(19,621)	(21,525)
Gain (loss) from sale of discontinued operations	(121)	148,839	94,265
Net income (loss) attributable to common stock and participating preferred stockholders	$ (14,156)	$ 111,606	$ 27,887

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (9,548)	$ 111,606	$ 27,869
Other comprehensive income (loss)
Foreign currency translation adjustment	(4,717)	(7,583)	(8,156)
Unrealized gain on available-for-sale securities	2,462
Actuarial benefit on pension plan	1,129
Less: Comprehensive (income) attributable to the noncontrolling interest	(2,559)		(711)
Comprehensive income (loss) attributable to HC2 Holdings, Inc.	$ (13,233)	$ 104,023	$ 19,002

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 107,978	$ 8,997
Short-term investments	4,867
Accounts receivable (net of allowance for doubtful accounts receivable of $2,760 and $2,476 at December 31, 2014 and 2013, respectively)	151,558	18,980
Costs and recognized earnings in excess of billings on uncompleted contracts	28,098
Deferred tax asset-current	1,701
Inventories	14,975
Prepaid expenses and other current assets	18,590	40,594
Assets held for sale	3,865	6,329
Total current assets	331,632	74,900
Restricted cash	6,467
Long-term investments	48,674
Property, plant and equipment, net	239,851	2,962
Goodwill	27,990	3,378
Other intangible assets, net	31,144
Deferred tax asset-long-term	15,811
Other assets	22,479	6,440
Total assets	724,048	87,680
Current liabilities:
Accounts payable	79,794	6,964
Accrued interconnection costs	9,717	12,456
Accrued payroll and employee benefits	20,023	1,854
Accrued expenses and other current liabilities	34,042	5,550
Billings in excess of costs and recognized earnings on uncompleted contracts	41,959
Accrued income taxes	512	53
Accrued interest	3,125
Current portion of long-term debt	10,444
Current portion of pension liability	5,966
Liabilities held for sale		4,823
Total current liabilities	205,582	31,700
Long-term debt	332,927
Pension liability	31,244
Other liabilities	1,617	1,571
Total liabilities	571,370	33,271
Commitments and contingencies (See Note 11)
Temporary equity (See Note 14)
Preferred stock, $0.001 par value - 20,000,000 shares authorized; Series A-30,000 and 0 shares issued and outstanding at December 31, 2014 and 2013, respectively; Series A-1-11,000 and 0 shares issued and outstanding at December 31, 2014 and 2013, respectively	39,845
Stockholders' equity:
Common stock, $0.001 par value - 80,000,000 shares authorized; 23,844,711 and 14,257,545 shares issued and 23,813,085 and 14,225,919 shares outstanding at December 31, 2014 and 2013, respectively	24	14
Additional paid-in capital	147,081	98,598
Accumulated deficit	(41,880)	(29,773)
Treasury stock, at cost - 31,626 shares at December 31, 2014 and 2013, respectively	(378)	(378)
Accumulated other comprehensive loss	(15,178)	(14,052)
Total HC2 Holdings, Inc. stockholders' equity before noncontrolling interest	89,669	54,409
Noncontrolling interest	23,164
Total stockholders' equity	112,833	54,409
Total liabilities, temporary equity and stockholders' equity	$ 724,048	$ 87,680

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Accounts receivable, allowance for doubtful accounts receivable	$ 2,760	$ 2,476
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	23,844,711	14,257,545
Common stock, shares outstanding	23,813,085	14,225,919
Treasury stock, shares	31,626	31,626
Series A Convertible Preferred Stock [Member]
Preferred stock, shares issued	30,000	30,000
Preferred stock, shares outstanding	0	0
Series A-1 Convertible Preferred Stock [Member]
Preferred stock, shares issued	11,000	11,000
Preferred stock, shares outstanding	0	0

Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Non-controlling Interest [Member]
Balance at Dec. 31, 2011	$ 101,706	$ 14	$ 142,796	$ (378)	$ (51,085)	$ 2,416	$ 7,943
Balance, shares at Dec. 31, 2011		13,741
Share-based compensation expense	5,194		5,194
Proceeds from sale of common stock, net	124		124
Proceeds from sale of common stock, net, Shares		193
Taxes paid in lieu of shares issued for share-based compensation	(1,653)		(1,653)
Dividends declared	(56,581)		(56,581)
Acquisition of noncontrolling interest			8,654				(8,654)
Net income (loss)	27,869				27,887		(18)
Foreign currency translation adjustment	(8,156)					(8,885)	729
Balance at Dec. 31, 2012	68,503	$ 14	98,534	(378)	(23,198)	(6,469)
Balance, shares at Dec. 31, 2012		13,934
Excess of fair value of net assets over purchase price of acquired company	60,744
Share-based compensation expense	2,286		2,286
Proceeds from sale of common stock, net	1,158		1,158
Proceeds from sale of common stock, net, Shares		328
Taxes paid in lieu of shares issued for share-based compensation	(1,000)		(1,000)
Taxes paid in lieu of shares issued for share-based compensation, Shares		(36)
Dividends declared	(120,561)		(2,380)		(118,181)
Net income (loss)	111,606				111,606
Foreign currency translation adjustment	(7,583)					(7,583)
Balance at Dec. 31, 2013	54,409	$ 14	98,598	(378)	(29,773)	(14,052)
Balance, shares at Dec. 31, 2013		14,226
Excess of fair value of net assets over purchase price of acquired company	3,378
Share-based compensation expense	11,487		11,487
Proceeds from sale of common stock, net	6,000	$ 2	5,998
Proceeds from the exercise of warrants and stock options	24,348	$ 8	24,340
Proceeds from sale of common stock, net, Shares		1,500
Proceeds from the exercise of warrants and stock options, Shares		7,589
Taxes paid in lieu of shares issued for share-based compensation	(47)		(47)
Preferred stock dividend and accretion	(2,049)		(2,049)
Preferred stock beneficial conversion feature	659		659
Issuance of restricted stock, Shares		498
Acquisition of noncontrolling interest	65,062						65,062
Additional acquisition of noncontrolling interest	(41,036)						(41,036)
Excess book value over fair value of purchased noncontrolling interest			3,421				(3,421)
Actuarial benefit on pension plan	1,129					1,129
Net income (loss)	(9,548)				(12,107)		2,559
Foreign currency translation adjustment	(4,717)					(4,717)
Unrealized gain on available-for-sale securities	2,462					2,462
Balance at Dec. 31, 2014	112,833	$ 24	147,081	$ (378)	$ (41,880)	$ (15,178)	$ 23,164
Balance, shares at Dec. 31, 2014		23,813
Excess of fair value of net assets over purchase price of acquired company	$ 27,990		$ 4,674

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net income (loss)	$ (9,548)	$ 111,606	$ 27,869
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for doubtful accounts receivable	403	1,507	4,819
Share-based compensation expense	11,487	2,286	5,194
Depreciation and amortization	8,967	23,964	43,239
Amortization of deferred financing costs	240
(Gain) loss on sale or disposal of assets	816	(148,848)	(93,175)
(Gain) loss on sale of investments	(434)
Equity investment (income)/loss	(3,359)
Impairment of goodwill and long-lived assets	291	3,123	20,298
Amortization of debt discount	1,593	86	201
Loss on early extinguishment or restructuring of debt	11,969	21,124	21,682
Gain on bargain purchase	(1,417)
Realized loss on marketable securities	1,608
Change in fair value of Contingent Value Rights		(14,904)	(1,292)
Deferred income taxes	(31,838)	(522)	119
Unrealized foreign currency transaction (gain) loss on intercompany and foreign debt	225	(764)	(324)
Changes in assets and liabilities, net of acquisitions:
(Increase) decrease in accounts receivable	23,306	(2,892)	16,372
(Increase) decrease in costs and recognized earnings in excess of billings on uncompleted contracts	(1,139)
(Increase) decrease in inventories	6,616	644	662
(Increase) decrease in prepaid expenses and other current assets	28,044	(5,346)	(2,059)
(Increase) decrease in other assets	1,870	3,221	5,933
Increase (decrease) in accounts payable	23,956	(2,014)	(8,393)
Increase (decrease) in accrued interconnection costs	(2,790)	4,418	(3,397)
Increase (decrease) in accrued payroll and employee benefits	6,825	(5,287)
Increase (decrease) in accrued expenses and other current liabilities	(14,451)	(829)	(8,203)
Increase (decrease) in billings in excess of costs and recognized earnings on uncompleted contracts	(23,793)
Increase (decrease) in accrued income taxes	(1,091)	(7,432)	(942)
Increase (decrease) in accrued interest	3,049	(1,715)	(3,870)
Increase (decrease) in other liabilities	(1,951)	(1,741)	(1,164)
Increase (decrease) in pension liability	(6,641)
Net cash provided by (used in) operating activities	32,813	(20,315)	23,569
Cash flows from investing activities:
Purchases of property, plant and equipment	(5,819)	(12,577)	(31,747)
Sale of property and equipment and other assets	3,706	9	25
Purchases of equity investments	(22,909)
Purchases of available-for-sale securities	(9,875)
Investment in debt securities	(250)
Sale of available-for-sale securities	2,411
Cash from disposition of business, net of cash disposed	2,495	270,634	183,101
Cash paid for business acquisitions, net of cash acquired	(146,026)	(397)	(1,707)
Purchase of noncontrolling interest	(38,403)
(Increase) decrease in restricted cash	(1,785)	475	66
Net cash (used in) provided by investing activities	(216,455)	258,144	149,738
Cash flows from financing activities:
Proceeds from long-term obligations	915,896
Principal payments on long-term obligations	(689,745)	(128,036)	(120,763)
Payment of fees on restructuring of debt	(12,333)	(1,201)	(13,455)
Proceeds from sale of common stock, net	6,000	1,158	124
Proceeds from sale of preferred stock, net	40,050
Proceeds from the exercise of warrants and stock options	24,348
Payment of dividend equivalents		(1,235)	(125)
Payment of dividends	(1,626)	(119,788)	(55,265)
Receipt of dividends	2,081
Taxes paid in lieu of shares issued for share-based compensation	(47)	(1,000)	(1,653)
Net cash provided by (used) in financing activities	284,624	(250,102)	(191,137)
Effects of exchange rate changes on cash and cash equivalents	(2,001)	(1,927)	(25)
Net change in cash and cash equivalents	98,981	(14,200)	(17,855)
Cash and cash equivalents, beginning of period	8,997	23,197	41,052
Cash and cash equivalents, end of period	107,978	8,997	23,197
Supplemental cash flow information:
Cash paid for interest	7,527	10,372	24,908
Cash paid for taxes	8,792	616	2,349
Preferred stock dividends and accretion	2,049
Non-cash investing and financing activities:
Capital lease additions		$ 148
Prepayment premium associated with debt restructuring converted into new debt			9,084
Acquisition of noncontrolling interest			$ 8,654
Purchases of property, plant and equipment under financing arrangements	4,400
Property, plant and equipment included in accounts payable	2,544
Non-cash investing activity on the reacquisition of shares from a noncontrolling interest	$ 1,700

Organization and Business	12 Months Ended
Organization and Business	Dec. 31, 2014
Accounting Policies [Abstract]
Organization and Business	1. ORGANIZATION AND BUSINESS On April 9, 2014, we changed our name from PTGi Holding, Inc. to HC2 Holdings, Inc. (“HC2” and, together with its subsidiaries, the “Company”, “we” and “our”). The name change was effected pursuant to Section 253 of the General Corporation Law of the State of Delaware by the merger of our wholly owned subsidiary, HC2 Name Change, Inc., into us. In connection with the name change, we changed the ticker symbol of our common stock from “PTGI” to “HCHC”. On May 29, 2014, the Company completed the acquisition of 2.5 million shares of common stock of Schuff International, Inc. (“Schuff”), a steel fabrication and erection company, and negotiated an agreement to purchase an additional 198,411 shares, representing an approximately 65% interest in Schuff. The aggregate consideration for the shares of Schuff acquired was approximately $85 million, which was funded using the net proceeds from (i) the issuance of $30 million of Series A Convertible Participating Preferred Stock of HC2 (the “Series A Preferred Stock”) and $6 million of common stock of HC2, and (ii) the entry into a senior secured credit facility providing for an eighteen month, floating interest rate term loan of $80 million (the “May Credit Facility”), each of which was also completed on May 29, 2014. Schuff repurchased a portion of its outstanding common stock in June 2014, which had the effect of increasing the Company’s ownership interest to 70%. During the fourth quarter, the final results of a tender offer for all outstanding shares of Schuff were announced and various open-market purchases were made, which resulted in the acquisition of 809,043 shares and an increase in our ownership interest to 91%. We intend to execute a short-form merger, which will increase our ownership of Schuff shares to 100%. Schuff and its wholly-owned subsidiaries primarily operate as integrated fabricators and erectors of structural steel and heavy steel plates with headquarters in Phoenix, Arizona and operations in Arizona, Georgia, Texas, Kansas and California. Schuff’s construction projects are primarily in the aforementioned states. In addition, Schuff has construction projects in select international markets, primarily Panama. Schuff has a 49% interest in Schuff Hopsa Engineering, Inc. (“SHE”), a Panamanian joint venture with Empresas Hopsa, S.A., that provides steel fabrication services. Schuff controls the operations of SHE, as provided in the operating agreement. Therefore, the assets, liabilities, revenues and expenses of SHE are included in the consolidated financial statements of Schuff. Empresas Hopsa, S.A.’s 51% interest in SHE is presented as a noncontrolling interest component of total equity. On August 1, 2014, the Company paid $15.5 million to acquire 15,500 shares of Series A Convertible Preferred Stock of American Natural Gas (“ANG”), representing an approximately 51% interest in ANG. ANG is a premier distributor of natural gas motor fuel headquartered in the Northeast that designs, builds, owns, acquires, operates and maintains compressed natural gas fueling stations for transportation. On September 22, 2014, the Company completed the acquisition of Bridgehouse Marine Limited (“Bridgehouse”), the parent holding company of Global Marine Systems Limited (“GMSL”). The purchase price reflects an enterprise value of approximately $260 million, including assumed indebtedness, and was funded using a portion of the net proceeds from (i) the issuance of $11 million of Series A-1 Convertible Participating Preferred Stock of HC2 (the “Series A-1 Preferred Stock”) and (ii) a senior secured credit facility providing for a twelve month, floating interest rate term loan of $214 million and a delayed draw term loan of $36 million (the “September Credit Facility”), each of which was also completed on September 22, 2014. The September Credit Facility was subsequently repaid using the proceeds from HC2’s issuance of its 11% Notes discussed below under Note 9—“Long-Term Obligations”. With a portion of the proceeds from the September Credit Facility, the Company paid off its May Credit Facility and its senior unsecured credit facility consisting of a term loan of $17 million entered into on September 8, 2014 (the “Novatel Acquisition Term Loan”) for the purpose of acquiring an ownership interest in Novatel Wireless, Inc. GMSL is a leading provider of engineering and underwater services on submarine cables. In conjunction with the acquisition, approximately 3% of the Company’s interest in GMSL was purchased by a group of individuals, leaving the Company’s controlling interest as of December 31, 2014 at approximately 97%. We have historically operated a telecommunications business including a network of direct routes and provided premium voice communication services for national telecom operators, mobile operators, wholesale carriers, prepaid operators, Voice over Internet Protocol (“VoIP”) service operators and Internet service providers (“ISPs”). The Company has provided telecommunications service from its North America Telecom and International Carrier Services (“ICS”) business units. In the second quarter of 2013, the Company entered into a definitive purchase agreement to sell its North America Telecom business and sought shareholder approval of such transaction. On July 31, 2013, the Company completed the initial closing of the sale of substantially all of its North America Telecom business. The sale of Primus Telecommunications, Inc. (“PTI”) was also contemplated as part of this transaction, and subject to regulatory approval. On July 31, 2014, having received the necessary regulatory approvals for the sale of PTI, we completed the divestiture of the remainder of our North America Telecom business. In our Life Sciences segment, we operate Pansend, LLC (“Pansend”), which has an 80% interest in Genovel Orthopedics, Inc., which seeks to develop products to treat early osteoarthritis of the knee, and a 61% interest in GemDerm Aesthetics, Inc., which develops skin lightening technology. Additionally, we acquired a 100% ownership interest in DMi, Inc. (“DMi”) which owns licenses to create and distribute NASCAR^® video games. During 2013, we also provided data center services in Canada through our BLACKIRON Data business unit. On April 17, 2013, we consummated the divestiture of BLACKIRON Data. During 2012, we sold our Australian segment. The Company currently has six reportable operating segments based on management’s organization of the enterprise—Manufacturing (Schuff), Marine Services (GMSL), Utilities (ANG), Telecommunications (ICS), Life Sciences and Other, which includes operations that do not meet the separately reportable segment thresholds. HC2 was formed as a corporation under the laws of Delaware in 1994 and operates as a holding company of operating subsidiaries primarily in the United States and the United Kingdom.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation—The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and all other subsidiaries over which the Company exerts control. All intercompany profits, transactions and balances have been eliminated in consolidation. As of December 31, 2014, the Company has a 97% interest in GMSL, a 91% interest in Schuff, a 51% interest in ANG and a 100% interest in DMi. Through its subsidiary, Pansend, the Company has an 80% interest in Genovel Orthopedics, Inc. and a 61% interest in GemDerm Aesthetics, Inc. The results of each of these entities are consolidated with the Company’s results from and after their respective acquisition dates based on guidance from the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 810, “Consolidation” (“ASC 810”). The remaining interests not owned by the Company are presented as a noncontrolling interest component of total equity. Schuff uses a 4-4-5 week quarterly cycle, which for the fiscal year of 2014 ended on December 28, 2014.

Discontinued Operations—In the second quarter of 2013, the Company sold its BLACKIRON Data segment and reiterated its June 2012 commitment to dispose of ICS. In addition, in the second quarter of 2013, the Company entered into a definitive purchase agreement to sell its North America Telecom business and sought shareholder approval of such transaction. The Company completed the initial closing of the sale of its North America Telecom business on July 31, 2013 and completed the divestiture of the remainder of its North America Telecom business on July 31, 2014 (see Note 20—“Discontinued Operations”). In conjunction with the initial closing of the sale of the North America Telecom business, the Company redeemed its outstanding debt issued by PTGi International Holding, Inc. (f/k/a Primus Telecommunications Holding, Inc., “PTHI”) on August 30, 2013. Because the debt was required to be repaid as a result of the sale of North America Telecom, the interest expense and loss on early extinguishment or restructuring of debt of PTHI. has been allocated to discontinued operations. In December 2013, based on management’s assessment of the requirements under Accounting Standards Codification (“ASC”) No. 360, “Property, Plant and Equipment” (“ASC 360”), it was determined that ICS no longer met the criteria of a held for sale asset. On February 11, 2014, the Board of Directors officially ratified management’s December 2013 assessment, and reclassified ICS from held for sale to held and used, effective December 31, 2013.

Presentation of Taxes Collected—The Company reports any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between the Company and a customer (including sales, use, value-added and some excise taxes) on a net basis (excluded from revenues).

Foreign Currency Transactions—Foreign currency transactions are transactions denominated in a currency other than a subsidiary’s functional currency. A change in the exchange rates between a subsidiary’s functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is reported by the Company as a foreign currency transaction gain (loss). The primary component of the Company’s foreign currency transaction gain (loss) is due to agreements in place with certain subsidiaries in foreign countries regarding intercompany transactions. The Company anticipates repayment of these transactions in the foreseeable future, and recognizes the realized and unrealized gains or losses on these transactions that result from foreign currency changes in the period in which they occur as foreign currency transaction gain (loss).

Foreign Currency Translation—The assets and liabilities of the Company’s foreign subsidiaries are translated at the exchange rates in effect on the reporting date. Income and expenses are translated at the average exchange rate during the period. The net effect of such translation gains and losses are reflected within accumulated other comprehensive income (loss) in the stockholders’ equity section of the consolidated balance sheets.

Cash and Cash Equivalents—Cash and cash equivalents are comprised principally of amounts in money market accounts, operating accounts, certificates of deposit, and overnight repurchase agreements with original maturities of three months or less.

Accounts Receivable—Accounts receivable is stated at amounts due from customers net of an allowance for doubtful accounts. Our allowance for doubtful accounts considers historical experience, the age of certain receivable balances, credit history, current economic conditions and other factors that may affect the counterparty’s ability to pay.

Inventories

Schuff—Inventories, primarily steel components, are stated at the lower of cost or market under the first-in, first-out method.

GMSL—Inventory is valued at the lower of cost or market value under the first-in first-out method. Provision for obsolescence is made where appropriate and is charged to cost of revenue in the consolidated statements of operations. Short-term work in progress on contracts is stated at cost less foreseeable losses. These costs include only direct labor and expenses incurred to date and exclude any allocation of overhead. The policy for long-term work in progress contracts is disclosed within the Revenue and Cost Recognition accounting policy for GMSL.

Short-term Investments—The current investments are classified as available-for-sale securities and the change in value is recognized within accumulated other comprehensive income (loss).

Long-term Investments—Investments in non-wholly-owned companies are generally consolidated if the Company’s interest exceeds 50% or if the Company has the power to direct the economic activities of the entity and the obligation to absorb losses, or accounted for under the equity method of accounting when the Company exercises significant influence over the venture.

Under the equity method of accounting, the Company records its proportionate interest in the underlying income or loss of the equity method investee. Additional investments made or distributions received are recorded as increases and decreases, respectively, to the carrying value of the equity method investment. Equity method investments are evaluated for potential impairment as circumstances warrant and an impairment charge is recorded when an impairment is deemed to be other-than-temporary.

When the Company’s investment in an equity method investee is greater than its proportionate share of the underlying net assets of that investee, a basis difference is created under ASC No. 323, “Investments—Equity Method and Joint Ventures” (“ASC 323”). When this situation occurs, the Company is required to determine the acquisition date fair value of the identifiable assets and assumed liabilities in the same manner as for a business combination under ASC No. 805, “Business Combinations” (“ASC 805”). If the basis difference is assigned to amortizable assets, it is amortized (net of tax) against the Company’s investment in the equity method investee.

Accounting for Income Taxes—We recognize deferred tax assets and liabilities for the expected future tax consequences of transactions and events. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement bases and the tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. If necessary, deferred tax assets are reduced by a valuation allowance to an amount that is determined to be more likely than not recoverable. We must make significant estimates and assumptions about future taxable income and future tax consequences when determining the amount of the valuation allowance. The additional guidance provided by ASC No. 740, “Income Taxes” (“ASC 740”), clarifies the accounting for uncertainty in income taxes recognized in the financial statements. Expected outcomes of current or anticipated tax examinations, refund claims and tax-related litigation and estimates regarding additional tax liability (including interest and penalties thereon) or refunds resulting therefrom will be recorded based on the guidance provided by ASC 740 to the extent applicable.

At present, our U.S. and foreign companies have significant deferred tax assets resulting from tax loss carryforwards. The foreign deferred tax assets with minor exceptions are fully offset with valuation allowances. The appropriateness and amount of these valuation allowances are based on our assumptions about the future taxable income of each affiliate. If our assumptions have significantly underestimated future taxable income with respect to a particular affiliate, all or part of the valuation allowance for the affiliate would be reversed and additional income could result. The valuation allowances for the U.S. NOL deferred tax assets were released in 2014.

Deferred Financing Costs—The Company capitalizes certain expenses incurred in connection with its long-term debt and line of credit obligations and amortizes them over the term of the respective debt agreement. The amortization expense of the deferred financing costs is included in interest expense on the consolidated statements of operations. If the Company extinguishes portions of its long-term debt prior to the maturity date, deferred financing costs are charged to expense on a pro rata basis and are included in loss on early extinguishment or restructuring of debt on the consolidated statements of operations. Deferred financing costs are included in other assets on the consolidated balance sheets.

Property, Plant and Equipment—Property, plant and equipment are stated at cost less accumulated depreciation, which is provided on the straight-line method over the estimated useful lives of the assets. Cost includes major expenditures for improvements and replacements which extend useful lives or increase capacity of the assets as well as expenditures necessary to place assets into readiness for use. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Cost includes finance costs incurred prior to the asset being available for use. Expenditures for maintenance and repairs are expensed as incurred. Depreciation is determined on a straight-line basis over the estimated useful lives of the assets, which range from 15 to 40 years for buildings and improvements, up to 35 years for cable-ships and submersibles, 3 to 15 years for machinery and equipment, and 3 to 20 years for plant and motor vehicles. Plant includes equipment on the cable-ships that is portable and can be moved around the fleet and computer equipment. Leasehold improvements are amortized over the lives of the leases or estimated useful lives of the assets, whichever is shorter. Assets under construction are not depreciated until they are complete and available for use. Costs for internal use software that are incurred in the preliminary project stage and in the post-implementation stage are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized over the estimated useful life of the software. When assets are sold or otherwise retired, the costs and accumulated depreciation are removed from the books and the resulting gain or loss is included in operating results. Property, plant and equipment that have been included as part of the assets held for sale are no longer depreciated from the time that they are classified as such. The Company periodically evaluates the carrying value of its property, plant and equipment based upon the estimated cash flows to be generated by the related assets. If impairment is indicated, a loss is recognized.

Goodwill and Other Intangible Assets—Under ASC No. 350, “Intangibles—Goodwill and Other” (“ASC 350”), goodwill and indefinite lived intangible assets are not amortized but are reviewed annually for impairment, or more frequently, if impairment indicators arise. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to the provisions of ASC 360.

Goodwill impairment is tested at least annually (October 1^st) or when factors indicate potential impairment using a two-step process that begins with an estimation of the fair value of each reporting unit. Step 1 is a screen for potential impairment pursuant to which the estimated fair value of each reporting unit is compared to its carrying value. The Company estimates the fair values of each reporting unit by an estimation of the discounted cash flows of each of the reporting units based on projected earnings in the future (the income approach). If there is a deficiency (the estimated fair value of a reporting unit is less than its carrying value), a Step 2 test is required.

Step 2 measures the amount of impairment loss, if any, by comparing the implied fair value of the reporting unit’s goodwill with its carrying amount. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination is determined; i.e., through an allocation of the fair value of a reporting unit to all of the assets and liabilities of that unit as if the reporting unit had been acquired in a business combination. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess.

The Company also may utilize the provisions of Accounting Standards Update (“ASU”) No. 2011-08, “Testing Goodwill for Impairment” (“ASU 2011-08”), which allows the Company to use qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount.

Subsequent to classifying ICS as a discontinued operation in the second quarter of 2012 and its goodwill being classified as a held for sale asset, the reporting units were Canada and US. Subsequent to the sale of North America Telecom (which included the Canada reporting unit) in the third quarter of 2013, the Company had no goodwill attributable to the remaining US reporting unit. The US reporting unit goodwill was attributable to PTI, the unsold portion of North America Telecom, and was included in assets held for sale. As a result of the decision to cease the sale process of ICS as of December 31, 2013, ICS became a reporting unit and its goodwill was reclassified as a held and used asset. With the acquisition of Schuff it became its own reporting unit in May 2014 and was subject to annual testing for impairment on October 1^st.

Estimating the fair value of a reporting unit requires various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, and industry and general economic data from third party sources. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit.

Intangible assets subject to amortization consists of certain trade names, customer contracts and developed technology. These finite lived intangible assets are amortized based on their estimated useful lives. Such assets are subject to the impairment provisions of ASC 360, wherein impairment is recognized and measured only if there are events and circumstances that indicate that the carrying amount may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset group. An impairment loss is recorded if after determining that it is not recoverable, the carrying amount exceeds the fair value of the asset.

In addition to the foregoing, the Company reviews its goodwill and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amounts of assets may not be recoverable. The factors that the Company considers important, and which could trigger an impairment review, include, but are not limited to: a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit; a significant decline in the market value of our common stock or debt securities for a sustained period; a material adverse change in economic, financial market, industry or sector trends; a material failure to achieve operating results relative to historical levels or projected future levels; and significant changes in operations or business strategy.

Valuation of Long-lived Assets—The Company reviews long-lived assets whenever events or changes indicate that the carrying amount of an asset may not be recoverable. In making such evaluations, the Company compares the expected undiscounted future cash flows to the carrying amount of the assets. If the total of the expected undiscounted future cash flows is less than the carrying amount of the assets, the Company is required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value and carrying value of the assets.

The Company makes significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as determining asset groups and estimating future cash flows, remaining useful lives, discount rates and growth rates. The resulting undiscounted cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the long-lived assets. The Company derives future cash flow estimates from its historical experience and its internal business plans, which include consideration of industry trends, competitive actions, technology changes, regulatory actions, available financial resources for marketing and capital expenditures and changes in its underlying cost structure.

The Company makes assumptions about the remaining useful life of its long-lived assets. The assumptions are based on the average life of its historical capital asset additions and its historical asset purchase trend. In some cases, due to the nature of a particular industry in which the company operates, the Company may assume that technology changes in such industry render all associated assets, including equipment, obsolete with no salvage value after their useful lives. In certain circumstances in which the underlying assets could be leased for an additional period of time or salvaged, the Company includes such estimated cash flows in its estimate.

The estimate of the appropriate discount rate to be used to apply the present value technique in determining fair value was the Company’s weighted average cost of capital which is based on the effective rate of its long-term debt obligations at the current market values (for periods during which the Company had long-term debt obligations) as well as the current volatility and trading value of the Company’s common stock.

Use of Estimates—The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of net revenue and expenses during the reporting period. Actual results may differ from these estimates. Significant estimates include allowance for doubtful accounts receivable, the extent of progress towards completion on contracts, contract revenue and costs on long-term contracts, market assumptions used in estimating the fair values of certain assets and liabilities, the calculation used in determining the fair value of HC2’s stock options required by ASC No. 718, “Compensation—Stock Compensation” (“ASC 718”), income taxes and various other contingencies.

Estimates of fair value represent the Company’s best estimates developed with the assistance of independent appraisals or various valuation techniques and, where the foregoing have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. The estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially.

Revenue and Cost Recognition

GMSL—GMSL generates revenue by providing maintenance services for subsea telecommunications cabling. GMSL also generates revenues from the design and installation of subsea cables under contracts. GMSL also provides installation, maintenance and repair of fiber optic communication and power infrastructure to offshore oil and gas platforms and installs inter-array power cables for use in offshore wind farms and in the offshore wind market.

Telecommunication/Maintenance—GMSL provides vessels on standby to repair fiber optic telecommunications cables in defined geographic zones, and its maintenance business is provided through contracts with consortia of up to 60 global telecommunications providers. Typically, GMSL enters into five to seven year contracts to provide maintenance to cable systems that are located in specific geographical areas. Revenue from these maintenance agreements is recognized on a straight line basis unless the pattern of costs associated with repairs indicates otherwise.

Telecommunications/Installation—GMSL provides installation of cable systems including route planning, mapping, route engineering, cable laying, and trenching and burial. GMSL’s installation business is project-based with fixed price contracts typically lasting one to five months. Revenue is recognized as time and costs are incurred.

Charter hire—rentals from short term operating leases in respect of vessels are recognized as revenue on a straight line basis over the term of the lease.

Oil & Gas—GMSL provides installation, maintenance and repair of fiber optic communication and power infrastructure to offshore platforms. Its primary activities include providing power from shore, enabling fiber-based communication between platforms and shore-based systems and installing permanent reservoir monitoring systems which allow customers to monitor subsea seismic data. The majority of GMSL’s oil & gas business is contracted on a project-by-project basis with major energy producers or tier I engineering, procurement and construction (EPC) contractors. Revenue is recognized as time and costs are incurred.

A loss is recognized immediately if the expected costs during any contract exceed expected revenues. Amounts billed in advance of revenue recognition are recorded as deferred revenue.

Schuff—Schuff performs its services primarily under fixed-price contracts and recognizes revenues and costs from construction projects using the percentage of completion method. Under this method, revenue is recognized based upon either the ratio of the costs incurred to date to the total estimated costs to complete the project or the ratio of tons fabricated to date to total estimated tons. Revenue recognition begins when work has commenced. Costs include all direct material and labor costs related to contract performance, subcontractor costs, indirect labor, and fabrication plant overhead costs, which are charged to contract costs as incurred. Revenues relating to changes in the scope of a contract are recognized when the work has commenced, Schuff has made an estimate of the amount that is probable of being paid for the change and there is a high degree of probability that the charges will be approved by the customer or general contractor. At December 31, 2014, Schuff had $53.9 million of unapproved change orders on open projects, for which it has recognized revenues on a percentage of completion basis. While Schuff has been successful in having the majority of its change orders approved in prior years, there is no guarantee that the unapproved change orders at December 31, 2014 will be approved. Revisions in estimates during the course of contract work are reflected in the accounting period in which the facts requiring the revision become known. Provisions for estimated losses on uncompleted contracts are made in the period a loss on a contract becomes determinable.

Construction contracts with customers generally provide that billings are to be made monthly in amounts which are commensurate with the extent of performance under the contracts. Contract receivables arise principally from the balance of amounts due on progress billings on jobs under construction. Retentions on contract receivables are amounts due on progress billings, which are withheld until the completed project has been accepted by the customer.

Costs and recognized earnings in excess of billings on uncompleted contracts primarily represent revenue earned under the percentage of completion method which has not been billed. Billings in excess of related costs and recognized earnings on uncompleted contracts represent amounts billed on contracts in excess of the revenue allowed to be recognized under the percentage of completion method on those contracts.

ICS—Net revenue is derived from carrying a mix of business, residential and carrier long-distance traffic, data and Internet traffic. For certain voice services, net revenue is earned based on the number of minutes during a call, and is recorded upon completion of a call. Revenue for a period is calculated from information received through the Company’s network switches. Customized software has been designed to track the information from the switch and analyze the call detail records against stored detailed information about revenue rates. This software provides the Company the ability to do a timely and accurate analysis of revenue earned in a period. Separate prepaid services software is used to track additional information related to prepaid service usage such as activation date, monthly usage amounts and expiration date. Revenue on these prepaid services is recognized as service is provided until expiration, when all unused minutes, which are no longer available to the customers, are recognized as revenue. Net revenue is also earned on a fixed monthly fee basis for unlimited local and long-distance voice plans and for the provision of data/Internet services (including retail VoIP), hosting, and colocation. In the United States, we charge customers Federal Universal Service Fund (“USF”) fees. We recognize revenue on a gross basis for USF and related fees. We record these fees as revenue when billed. Net revenue represents gross revenue, net of allowance for doubtful accounts receivable, service credits and service adjustments. Cost of revenue includes network costs that consist of access, transport and termination costs. The majority of the Company’s cost of revenue is variable, primarily based upon minutes of use, with transmission and termination costs being the most significant expense. Cost of revenue also includes fees such as Federal USF fees. Such costs are recognized when incurred in connection with the provision of telecommunications services.

Pensions—GMSL operates various pension schemes comprising both defined benefit plans and defined contribution plans. GMSL also makes contributions on behalf of employees who are members of the Merchant Navy Officers Pension Fund (“MNOPF”).

For the defined benefit plans and the MNOPF plan, the amounts charged to income (loss) from operations are the current service costs and the gains and losses on settlements and curtailments. These are included as part of staff costs. Past service costs are recognized immediately if the benefits have vested. If the benefits have not vested immediately, the costs are recognized over the period vesting occurs. The interest costs and expected return of assets are shown as a net amount and included in interest income and other income (expense). Actuarial gains and losses are recognized immediately in the consolidated statements of operations.

Defined benefit plans are funded with the assets of the plan held separately from those of GMSL, in separate trustee administered funds. Pension plan assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method discounted at a rate of equivalent currency and term to the plan liabilities. The actuarial valuations are obtained annually.

For the defined contribution plans, the amount charged to income (loss) from operations in respect of pension costs is the contributions payable in the period. Differences between contributions payable in the period and contributions actually paid are shown as either accruals or prepayments in the consolidated balance sheets.

Share-Based Compensation—The Company accounts for share-based compensation under ASC No. 718, “Compensation—Stock Compensation” (“ASC 718”), which addresses the accounting for share-based payment transactions whereby an entity receives employee services in exchange for equity instruments, including stock options and restricted stock units. ASC 718 generally requires that share-based compensation be accounted for using a fair-value based method. The Company records share-based compensation expense for all new and unvested stock options that are ultimately expected to vest as the requisite service is rendered. The Company issues new shares of common stock upon the exercise of stock options.

The Company elected to adopt the alternative transition method for calculating the tax effects of share-based compensation. The alternative transition method includes simplified methods to determine the beginning balance of the additional paid in capital (“APIC”) pool related to the tax effects of share-based compensation and to determine the subsequent impact on the APIC pool and the statement of cash flows of the tax effects of share-based awards that were fully vested and outstanding upon the adoption of ASC 718.

The Company uses a Black-Scholes option valuation model to determine the fair value of share-based compensation under ASC 718. The Black-Scholes model incorporates various assumptions including the expected term of awards, volatility of stock price, risk-free rates of return and dividend yield. The expected term of an award is no less than the option vesting period and is based on the Company’s historical experience. Expected volatility is based upon the historical volatility of the Company’s stock price. The risk-free interest rate is approximated using rates available on U.S. Treasury securities with a remaining term similar to the option’s expected life. The Company uses a dividend yield of zero in the Black-Scholes option valuation model as it does not anticipate paying cash dividends in the foreseeable future that do not contain antidilution provisions requiring the adjustment of exercise prices and option shares. Share-based compensation is recorded net of expected forfeitures.

Concentration of Credit Risk—Financial instruments that potentially subject the Company to concentration of credit risk principally consist of trade accounts receivable. The Company performs ongoing credit evaluations of its customers but generally does not require collateral to support customer receivables. The Company maintains its cash with high quality credit institutions, and its cash equivalents are in high quality securities.

Income (Loss) Per Common Share—Basic income (loss) per common share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per common share is computed using the weighted average number of shares of common stock, adjusted for the dilutive effect of potential common stock and related income from continuing operations, net of tax. Potential common stock, computed using the treasury stock method or the if-converted method, includes options, restricted stock, restricted stock units and convertible preferred stock.

In periods when the Company generates income, the Company calculates basic earnings per share using the two-class method, pursuant to ASC No. 260, “Earnings Per Share.” The two-class method is required as the shares of the Company’s Preferred Stock qualify as participating securities, having the right to receive dividends should dividends be declared on common stock. Under this method, earnings for the period are allocated on a pro-rata basis to the common stockholders and to the holders of preferred stock based on the weighted average number of common shares outstanding and the number of shares that could be converted. The Company does not use the two-class method in periods when it generates a loss as the holders of the Preferred Stock do not participate in losses.

Reclassification —Certain previous year amounts have been reclassified to conform with current year presentations, as related to the reporting of new balance sheet line items.

Newly Adopted Accounting Principles

In July 2013, an update was issued to the Income Taxes Topic No. 740, ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which indicates that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. Early adoption is permitted and this accounting update should be applied prospectively from the beginning of the fiscal year of adoption. On January 1, 2014, the Company adopted this update, which did not have a material impact on the consolidated financial statements.

In March 2013, an update was issued to the Foreign Currency Matters Topic No. 830, ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity,” which indicates that the entire amount of a cumulative translation adjustment related to an entity’s investment in a foreign entity should be released when there has been a (1) sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity; (2) loss of a controlling financial interest in an investment in a foreign entity; or (3) step acquisition for a foreign entity. Early adoption is permitted and this accounting update should be applied prospectively from the beginning of the fiscal year of adoption. On January 1, 2014, the Company adopted this update, which did not have a material impact on the consolidated financial statements.

In February 2013, an update was issued to the Liabilities Topic No. 405, ASU 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date,” which indicates reporting entities are required to measure obligations resulting from certain joint and several liability arrangements where the total amount of the obligation is fixed as of the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among co-obligors and any additional amounts the reporting entity expects to pay on behalf of its co-obligors. On January 1, 2014, the Company adopted this update, which did not have a material impact on the consolidated financial statements.

New Accounting Pronouncements

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40). This ASU is applicable to all companies, public and private, unless they have adopted the liquidation basis of accounting under Subtopic 205-30. It defines when and how companies are required to disclose going concern uncertainties, which must be evaluated each interim and annual period. Specifically, it requires management to determine whether substantial doubt exists regarding the entity’s going concern presumption. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). If substantial doubt exists, certain disclosures are required; the extent of those disclosures depends on an evaluation of management’s plans (if any) to mitigate the going concern uncertainty. The Company’s effective date for adoption is January 1, 2017. The Company does not expect this accounting update to have a material effect on its consolidated financial statements in future periods, although that could change.

In June 2014, the FASB issued ASU 2014–12, “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force),” in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. Early adoption is permitted. The Company’s effective date for adoption is January 1, 2016. The Company does not expect this accounting update to have a material effect on its consolidated financial statements in future periods, although that could change.

In June 2014, an update was issued to the Development Stage Entities Topic No. 915, ASU 2014-10, “Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The amendments in ASU 2014-10 eliminate an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk. The amendments to eliminate that exception simplify U.S. GAAP by reducing avoidable complexity in existing accounting literature and improve the relevance of information provided to financial statement users by requiring the application of the same consolidation guidance by all reporting entities. The elimination of the exception may change the consolidation analysis, consolidation decision, and disclosure requirements for a reporting entity that has an interest in an entity in the development stage. For public business entities, the amendment eliminating the exception to the sufficiency-of-equity-at-risk criterion for development stage entities in paragraph 4 810-10-15-16 should be applied retrospectively for annual reporting periods beginning after December 15, 2015, and interim periods therein. For all other entities, the amendments to Topic 810 should be applied retrospectively for annual reporting periods beginning after December 15, 2016, and interim reporting periods beginning after December 15, 2017. The Company does not expect this accounting update to have a material effect on its consolidated financial statements in future period, although that could change.

In May 2014, the FASB and IASB issued their final standard on revenue from contracts with customers. The standard, issued as ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” by the FASB and as IFRS 15 by the IASB, outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity:

•

Identifies the contract(s) with a customer (step 1).

•

Identifies the performance obligations in the contract (step 2).

•

Determines the transaction price (step 3).

•

Allocates the transaction price to the performance obligations in the contract (step 4).

•

Recognizes revenue when (or as) the entity satisfies a performance obligation (step 5).

The ASU applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. Certain of the ASU’s provisions also apply to transfers of nonfinancial assets, including in-substance nonfinancial assets that are not an output of an entity’s ordinary activities (e.g., sales of (1) property, plant, and equipment; (2) real estate; or (3) intangible assets). Existing accounting guidance applicable to these transfers (e.g., ASC 360-20) has been amended or superseded. Compared with current U.S. GAAP, the ASU also requires significantly expanded disclosures about revenue recognition. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017.

In April 2014, an update was issued to the Presentation of Financial Statements Topic No. 205 and Property, Plant and Equipment Topic No. 360, ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which changes the criteria for reporting discontinued operations. The ASU revises the definition of a discontinued operation and expands the disclosure requirements. Entities should not apply the amendments to a component of an entity that is classified as held for sale before the effective date even if it is disposed of after the effective date. That is, the ASU must be adopted prospectively. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been previously reported in the financial statements. The Company’s effective date for adoption is January 1, 2015. The Company does not expect this accounting update to have a material effect on its consolidated financial statements in future periods, although that could change.

Accounts Receivable and Contracts in Progress

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Accounts Receivable and Contracts in Progress

3. ACCOUNTS RECEIVABLE AND CONTRACTS IN PROGRESS

Accounts receivable consist of the following (in thousands):


	December 31,
	2014			2013
Contract receivables:
Contracts in progress	$	112,929		$	—
Unbilled retentions		32,850			—
Trade receivables		8,344			21,456
Other receivables		195			—
Allowance for doubtful accounts		(2,760	)		(2,476	)

	$	151,558		$	18,980

Costs and recognized earnings in excess of billings on uncompleted contracts and billings in excess of costs and recognized earnings on uncompleted contracts consist of the following:


	December 31,
	2014			2013
Costs incurred on contracts in progress	$	531,129		$	—
Estimated earnings		73,540			—

		604,669			—
Less progress billings		618,530			—

	$	(13,861	)	$	—

The above is included in the accompanying condensed consolidated balance sheet under the following captions:
Costs and recognized earnings in excess of billings on uncompleted contracts		28,098			—
Billings in excess of costs and recognized earnings on uncompleted contracts		(41,959	)		—

	$	(13,861	)	$	—

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Inventories

12 Months Ended

Dec. 31, 2014

Inventory Disclosure [Abstract]

Inventories

4. INVENTORIES

Inventories consist of the following (in thousands):


	December 31,
	2014		2013
Raw materials	$	12,956	$	—
Work in process		1,779		—
Finished goods		240		—

	$	14,975	$	—

Business Combinations

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Business Combinations

5. BUSINESS COMBINATIONS

The Company’s acquisitions were accounted for using the acquisition method of accounting which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. Estimates of fair value included in the consolidated financial statements, in conformity with ASC No. 820, “Fair Value Measurements and Disclosures” (“ASC 820”), represent the Company’s best estimates and valuations developed with the assistance of independent appraisers and, where such valuations have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. The following estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially.

Any changes to the initial estimates of the fair value of the assets and liabilities will be recorded as adjustments to those assets and liabilities and residual amounts will be allocated to goodwill. In accordance with ASC 805, if additional information is obtained about these assets and liabilities within the measurement period (not to exceed one year from the date of acquisition), including finalization of asset appraisals, the Company will refine its estimates of fair value to allocate the purchase price more accurately.

Schuff

On May 29, 2014, the Company completed the acquisition of 2.5 million shares of common stock of Schuff, a steel fabrication and erection company and negotiated an agreement to purchase an additional 198,411 shares, representing an approximately 65% interest in Schuff. Schuff repurchased a portion of its outstanding common stock in June 2014, which had the effect of increasing the Company’s ownership interest to 70%. During the fourth quarter, the final results of a tender offer for all outstanding shares of Schuff were announced and various open-market purchases were made, which resulted in the acquisition of 809,043 shares and an increase in our ownership interest to 91%. We intend to execute a short-form merger, which will increase our ownership of Schuff shares to 100%. Schuff and its wholly-owned subsidiaries primarily operate as integrated fabricators and erectors of structural steel and heavy steel plates with headquarters in Phoenix, Arizona and operations in Arizona, Georgia, Texas, Kansas and California. Schuff’s construction projects are primarily in the aforementioned states. In addition, Schuff has construction projects in select international markets, primarily Panama. The Company acquired Schuff to diversify its portfolio of holdings and saw Schuff as an opportunity to enter the steel fabrication and erection market.

The table below summarizes the preliminary estimates of fair value of the Schuff assets acquired and liabilities assumed as of the acquisition date. The Company purchased 2.5 million shares of common stock of Schuff for $78.75 million. The purchase price of Schuff was valued at $31.50 per share which represented both the cash paid by the Company for its 60% interest, and the fair value of the noncontrolling interest of 40%.

The preliminary purchase price allocation is as follows (in thousands):


Cash and cash equivalents	$	(627)
Investments		1,714
Accounts receivable		130,622
Costs and recognized earnings in excess of billings on uncompleted contracts		27,126
Prepaid expenses and other current assets		3,079
Inventories		14,487
Assets held for sale		—
Property and equipment, net		85,662
Goodwill		24,612
Trade names		4,478
Other assets		2,947

Total assets acquired		294,100
Accounts payable		37,621
Accrued payroll and employee benefits		11,668
Accrued expenses and other current liabilities		12,532
Billings in excess of costs and recognized earnings on uncompleted contracts		65,985
Accrued income taxes		1,202
Accrued interest		76
Current portion of long-term debt		15,460
Liabilities held for sale		—
Long-term debt		4,375
Deferred tax liability		7,815
Other liabilities		604
Noncontrolling interest		4,365

Total liabilities assumed		161,703

Enterprise value		132,397
Less fair value of noncontrolling interest		53,647

Purchase price attributable to controlling interest	$	78,750

The acquisition of Schuff resulted in goodwill of approximately $24.6 million. Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill was recognized as a new stand-alone reporting unit. Goodwill is not amortized and is not deductible for tax purposes.

The acquired amortizable intangible assets and the related estimated useful lives consist of the following (in thousands):


	Preliminary Estimated Useful Lives		Preliminary Estimated Value May 29, 2014
Trade names		15 years	$	4,478

Total intangible assets			$	4,478

ASC 810 requires that transactions that result in an increase in ownership of a subsidiary be accounted for as equity transactions. The carrying amount of the noncontrolling interest is adjusted to reflect the controlling interest’s decreased ownership interest in the subsidiary’s net assets and any difference between the consideration paid by the parent to a noncontrolling interest holder (or contributed by the parent to the net assets of the subsidiary) and the adjustment to the carrying amount of the noncontrolling interest in the subsidiary is recognized directly in equity attributable to the controlling interest. Due to the increase of the Company’s ownership to 91% from the acquisition date through December 31, 2014, the Company has recorded an adjustment of Schuff’s noncontrolling interest by $3.4 million and recorded as excess book value over fair value of purchased noncontrolling interest in the Company’s consolidated statement of equity.

ANG

On August 1, 2014, the Company paid $15.5 million to acquire 15,500 shares of Series A Convertible Preferred Stock of ANG (the “ANG Preferred Stock”), representing an approximately 51% interest in ANG. The ANG Preferred Stock is convertible into 1,033,333 shares of common stock and also has voting rights. The noncontrolling interest represents 1,000,000 shares of common stock; thereby giving the Company a controlling interest. ANG is a premier distributor of natural gas motor fuel headquartered in the Northeast that designs, builds, owns, operates and maintains compressed natural gas fueling stations for transportation. The Company acquired ANG for its strong growth potential which is in line with the Company’s strategy to find investments that can generate high returns and significant cash flow.

The table below summarizes the preliminary estimate of fair value of the ANG assets acquired and liabilities assumed as of the acquisition date. The purchase price of ANG was valued at $17.7 million which represented both the cash paid by the Company for its 51% interest ($15.5 million), and the fair value of the noncontrolling interest of 49%, which was determined by an outside appraisal to be $2.2 million.

The preliminary purchase price allocation is as follows (in thousands):


Cash and cash equivalents	$	15,704
Accounts receivable		306
Prepaid expenses and other current assets		31
Inventories		27
Property and equipment, net		1,921
Customer contracts		2,700
Trade names		6,300
Other assets		2

Total assets acquired		26,991
Accounts payable		49
Accrued payroll and employee benefits		5
Accrued expenses and other current liabilities		26
Billings in excess of costs and recognized earnings on uncompleted contracts		114
Current portion of long-term debt		34
Long-term debt		870
Deferred tax liability		3,530

Total liabilities assumed		4,628

Fair value of net assets acquired		22,363
Purchase price		17,689

Excess of fair value of net assets over purchase price	$	4,674

The acquisition of ANG resulted in an excess of the fair value of the net assets acquired over the purchase price of $4.7 million. The Company does not believe that the circumstances surrounding the transaction give rise to a bargain purchase. The existing shareholders of ANG continue to manage the day-to-day operations and own the noncontrolling interest. Accordingly, due to the related party nature of the transaction, management has recorded the excess of the fair value of the assets acquired over the purchase price in additional paid-in capital.

The acquired amortizable intangible assets and the related estimated useful lives consist of the following (in thousands):


	Preliminary Estimated Useful Lives		Preliminary Estimated Value August 1, 2014
Customer contracts		10 years	$	2,700
Trade names		10 years		6,300

Total intangible assets			$	9,000

GMSL

On September 22, 2014, the Company completed the acquisition of Bridgehouse and its subsidiary, GMSL. The purchase price reflects an enterprise value of approximately $260 million, including assumed indebtedness of approximately $130 million leaving a net enterprise value of approximately $130 million. GMSL is a leading provider of engineering and underwater services on submarine cables. The Company acquired GMSL for its attractive valuation and strong cash position.

The table below summarizes the preliminary estimates of fair value of the GMSL assets acquired and liabilities assumed as of the acquisition date. The net enterprise value of GMSL was valued at $130.4 million which represented both the cash paid by the Company for its 97% interest, and the fair value of the noncontrolling interest of 3%.

The preliminary purchase price allocation is as follows (in thousands):


Cash and cash equivalents	$	62,555
Accounts receivable		26,183
Prepaid expenses and other current assets		9,886
Inventories		7,395
Restricted cash		4,682
Property and equipment, net		156,976
Customer contracts		7,796
Trade name		1,137
Developed technology		1,624
Investments		24,266
Other assets		7,482

Total assets acquired		309,982
Accounts payable		8,965
Accrued expenses and other current liabilities		34,767
Accrued income taxes		1,251
Current portion of long-term debt		8,140
Long-term debt		78,356
Pension liability		45,923
Deferred tax liability		1,013
Other liabilities		1,179

Total liabilities assumed		179,594

Enterprise value		130,388
Less fair value of noncontrolling interest		3,803

Purchase price attributable to controlling interest	$	126,585

The values for customer contracts, trade name, developed technology and investments are estimates and may change.

The acquired amortizable intangible assets and the related estimated useful lives consist of the following (in thousands):


	Preliminary Estimated Useful Lives		Preliminary Estimated Value September 22, 2014
Customer contracts		15 years	$	7,796
Trade name		3 years		1,137
Developed technology		4 years		1,624

Total intangible assets			$	10,557

Pro Forma Adjusted Summary

The results of operations for Schuff, ANG, and GMSL have been included in the consolidated financial statements subsequent to their acquisition dates.

The following schedule presents unaudited consolidated pro forma results of operations data as if the acquisitions had occurred on January 1, 2013. This information does not purport to be indicative of the actual results that would have occurred if the acquisitions had actually been completed on the date indicated, nor is it necessarily indicative of the future operating results or the financial position of the combined company (in thousands):


	Years Ended December 31,
	2014			2013
Net revenue	$	854,152		$	801,417
Net income (loss) from continuing operations		15,860			12,707
Net income (loss) from discontinued operations		(2,984	)		(32,722	)
Gain (loss) from sale of discontinued operations		(121	)		148,839
Net income (loss) attributable to HC2 Holdings, Inc.	$	12,755		$	128,824

All expenditures incurred in connection with the acquisitions were expensed and are included in selling, general and administrative expenses. Transaction costs incurred in connection with the Schuff acquisition were $0.3 million during the year ended December 31, 2014. Transaction costs incurred in connection with the GMSL acquisition were $8.0 million during the year ended December 31, 2014. The results of operations for Schuff, ANG, and GMSL have been included in the consolidated results of operations from the respective acquisition dates through December 31, 2014. The Company recorded revenue of $348.3 million and net income of $13.7 million from Schuff for the year ended December 31, 2014. The Company recorded revenue of $1.8 million and net income of $0.4 million from ANG for the year ended December 31, 2014. The Company recorded revenue of $31.1 million and net income of $8.4 million from GMSL for the year ended December 31, 2014.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Investments

12 Months Ended

Dec. 31, 2014

Investments Schedule [Abstract]

Investments

6. INVESTMENTS

As of December 31, 2014, the Company had both current and long-term investments. The current investments are classified as available-for-sale securities and the change in value is recognized within accumulated other comprehensive income (loss). The fair market value is determined using quoted market prices (a Level 1 approach). The long-term investments are comprised of two types of investments; those accounted for under the equity method of accounting and investments in debt securities.

The long-term investments accounted for under the equity method of accounting include the following:

Joint ventures by GMSL (ownership interest reflects the Company’s 97% ownership in GMSL)

•

$0.1 million for investment in Global Cable Technology Ltd. representing a 63% ownership interest

•

$12.9 million for investment in SB Submarine Systems Co., Ltd. representing a 48% ownership interest

•

$2.1 million for investment in International Cableship Pte., Ltd. representing a 29% ownership interest

•

$0.8 million for investment in Sembawang Cable Depot Ptd., Ltd. representing a 39% ownership interest

•

$10.1 million for investment in Huawei Marine Systems Co., Ltd. representing a 48% ownership interest

•

$0.4 million for investment in Visser Smit Global Marine Partnership representing a 48% ownership interest

Novatel Wireless, Inc. (“Novatel”)

•

An initial investment of $14.2 million for a combination of common stock, warrants and convertible preferred stock. The Company received (i) 7,363,334 shares of common stock at a stock price of $1.75 per share, (ii) 5-year warrants to purchase an additional 4,117,647 shares of common stock at an exercise price of $2.26 per share and (iii) 87,196 shares of Series C Convertible Preferred Stock at a price of $17.50 per share.

•

In October 2014, the 87,196 shares of Series C Convertible Preferred Stock was converted into 871,960 shares of common stock.

•

The Company’s ownership of common stock and warrants represents beneficial ownership of approximately 25% of Novatel’s common stock.

•

A basis difference, net of tax of $9.1 million consists of a trade name of $1.2 million (being amortized over 15 years), a technology and customer intangible of $1.8 million (being amortized over 7 years) and goodwill of $6.1 million.

•

Current investment balance is $13.4 million.

Kaneland, LLC (“Kaneland”)

•

An initial investment of $1.2 million for stock under a subscription agreement representing a 35% ownership interest.

•

A basis difference, net of tax of $0.7 million consisting of developed technology (to be amortized over 3 years once underlying technology is completed).

•

Current investment balance is $1.2 million.

NerVve Technologies, Inc. (“NerVve”)

•

An initial investment of $5.0 million for 791,071 shares of Series A-1 Preferred Stock representing a 36% ownership interest.

•

In the fourth quarter, the Company purchased an additional 94,215 shares of Series A-1 Preferred Stock from its former holders for $0.6 million, which had the effect of increasing the ownership to approximately 40%.

•

A basis difference, net of tax of $3.1 million consisting of developed technology (to be amortized over 3 years once underlying technology is completed).

•

Current investment balance is $5.5 million.

Benevir Biopharm, Inc. (“Benevir”)

•

An initial investment of $1.95 million for 2,000 shares of Series A-1 Preferred Stock representing a 49% ownership interest.

•

A basis difference, net of tax of $1.2 million consisting of developed technology (to be amortized over 15 years once underlying technology is completed).

•

Current investment balance is $1.9 million.

During the year ended December 31, 2014, the Company recorded $3.4 million of equity in net income from these investments. As of December 31, 2014, the net book value of the equity method investments was $48.7 million. The long-term investments in debt securities include $0.3 million of convertible debt of mParticle.

Summarized information for the entities in which we have equity method investments is as follows (in thousands):


Income Statement Data
Income Statement Data	Year Ended December 31, 2014
Net Revenue	$	151,594
Gross Profit	$	35,783
Income from continuing operations	$	5,142
Net income	$	5,142


Balance Sheet Summary
Balance Sheet Summary	December 31, 2014
Current assets	$	269,864
Noncurrent assets	$	149,995
Current liabilities	$	179,552
Noncurrent liabilities	$	18,063

Property and Equipment

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property and Equipment

7. PROPERTY AND EQUIPMENT

Property, plant and equipment consist of the following (in thousands):


	December 31,
	2014		2013
Land	$	17,795	$	—
Building and leasehold improvements		29,520		386
Plant and transportation equipment		6,410		—
Cable-ships and submersibles		143,270		—
Equipment, furniture and fixtures		35,229		5,683
Construction in progress		12,150		—

		244,374		6,069
Less accumulated depreciation and amortization		4,523		3,107

	$	239,851	$	2,962

Depreciation expense was $8.1 million, $12.0 million and $3.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. Depreciation and amortization expense in 2013 includes depreciation and amortization for the period July 1, 2012—December 31, 2013, when the property and equipment of ICS was included in assets held for sale. In accordance with US GAAP, held for sale assets are not depreciated. When ICS was no longer considered to be held for sale, we were required to record all unrecorded depreciation in the fourth quarter of 2013.

As of December 31, 2014, total net book value of equipment under capital leases consisted of $109.5 million of cable-ships and submersibles. This included $1.4 million of accumulated depreciation.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

8. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The Company performed its annual goodwill impairment test for the ICS reporting unit on October 1, 2014. Based on the results of the step one test, the Company determined that the fair value was in excess of the carrying value and a step two test was not required. The Company used an income-based approach looking at the most current financial projections available to determine the outlook for future income generation. Estimates of future income were projected for a five year forecast period after which assumptions were made relative to a terminal period. A discounted cash flow analysis using a 13.0% weighted average cost of capital was used to facilitate the calculation of fair value. A key assumption in the fair value calculations was the Company’s future operating performance and resulting cash flow, which are inherently subject to significant uncertainties and contingencies and are based on management’s best estimates at the date of measurement. Potential events which could have a negative effect on this and other key assumptions include competitive actions, technological developments, regulatory actions and currency movements.

The Company performed its annual goodwill impairment test for the Schuff reporting unit on October 1, 2014. The Company utilized the provisions of ASU 2011-08, which allows the Company to use qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The Company analyzed current projections for future performance compared to prior projections which had been used recently for the valuation of assets acquired and liabilities assumed. The Company did not identify any material economic conditions, industry or market considerations or cost factors that would significantly alter the carrying value or fair value of the Schuff reporting unit. In addition, the executive management team of each reporting unit has remained static since their acquisition. All of these factors led to the conclusion that it is not more likely than not that the fair value of the Schuff reporting unit is less than its carrying amount.

The Company sold its BLACKIRON Data segment during the second quarter of 2013. BLACKIRON Data was part of the Canada reporting unit, and therefore an allocation of the goodwill of the Canada reporting unit was made to the disposed entity. Prior to its disposal, the Company allocated, based on relative fair value to the Canada reporting unit in total, $20.2 million of goodwill to BLACKIRON Data.

The sale of BLACKIRON Data and the announcement of the sale of North America Telecom during the second quarter of 2013 were considered triggering events under ASC 350 and the Company tested the goodwill of the Canada and US reporting units for impairment. The proceeds from each of the transactions were used as a measurement of fair value. Based on the carrying values of the Canada and US reporting units, the Company determined that goodwill was not impaired as of June 30, 2013.

The Company completed the initial closing of the sale of the North America Telecom segment during the third quarter of 2013. A portion of North America Telecom included in the initial closing represented the remaining portion of goodwill, or $13.2 million, of the Canada reporting unit. In addition, regarding the US reporting unit, prior to its disposal, the Company allocated, based on relative fair value to the US reporting unit in total, $22.6 million of goodwill to the disposed entities of North America Telecom. The remaining goodwill of the US reporting unit of $4.0 million was applicable to PTI, and included in held for sale assets prior to its divestiture on July 31, 2014.

In conjunction with the decision to cease the sale process of ICS, ICS was valued at the lower of the (1) carrying value prior to its held for sale classification, adjusted for any depreciation and amortization that would have been recognized and (2) the fair value as of the date of the decision not to sell. It was then reclassified to held and used as of December 31, 2013. Subsequent to such reclassification, the Company tested goodwill under ASC 350 using a Step 1 and Step 2 approach. Because the fair value of ICS exceeded its adjusted carrying value under Step 1, no further analysis was required. The Company used an income-based approach looking at the most current financial projections available to determine the outlook for future income generation. Estimates of future income were projected for a five year forecast period after which assumptions were made relative to a terminal period. A discounted cash flow analysis using a 11.1% weighted average cost of capital was used to facilitate the calculation of fair value.

The changes in the carrying amount of goodwill by reporting unit for the years ended December 31, 2014 and 2013 are as follows (in thousands):


					Disposed Reporting Units
	Schuff		ICS		United States			Canada			Total
Balance as of January 1, 2013	$	—	$	—	$	26,582		$	34,162		$	60,744
Effect of change in foreign currency exchange rates		—		—		—			(776	)		(776	)
Disposition of business		—		—		(22,568	)		(33,386	)		(55,954	)
Allocation (to) from disposal group		—		3,378		(4,014	)		—			(636	)

Balance as of December 31, 2013	$	—	$	3,378	$	—		$	—		$	3,378
Effect of change in foreign currency exchange rates		—		—		—			—			—
Acquisition of business		24,612		—		—			—			24,612

Balance as of December 31, 2014	$	24,612	$	3,378	$	—		$	—		$	27,990

Indefinite-lived Trade Names

In conjunction with the initial closing of the sale of the North America Telecom segment, the Company also assigned the trade names used by the North America Telecom segment to affiliates of York Capital Management. The value of the assigned trade names was $27.0 million, less a deferred tax liability of $10.5 million.

Amortizable Intangible Assets

Intangible assets subject to amortization consisted of the following (in thousands):


	Schuff			GMSL			ANG			Pansend			Other		Corporate		Total
Trade names
Balance as of December 31, 2013	$	—		$	—		$	—		$	—		$	—	$	—	$	—
Effect of change in foreign currency exchange rates		—			(49	)		—			—			—		—		(49	)
Amortization		(174	)		(91	)		(263	)		—			—		—		(528	)
Acquisition of business		4,478			1,137			6,300			—			—		—		11,915

Balance as of December 31, 2014	$	4,304		$	997		$	6,037		$	—		$	—	$	—	$	11,338

Customer relationships
Balance as of December 31, 2013	$	—		$	—		$	—		$	—		$	—	$	—	$	—
Effect of change in foreign currency exchange rates		—			(339	)		—			—			—		—		(339	)
Amortization		—			(124	)		(151	)		—			—		—		(275	)
Acquisition of business		—			7,796			5,032			—			—		—		12,828

Balance as of December 31, 2014	$	—		$	7,333		$	4,881		$	—		$	—	$	—	$	12,214

Developed technology
Balance as of December 31, 2013	$	—		$	—		$	—		$	—		$	—	$	—	$	—
Effect of change in foreign currency exchange rates		—			(71	)		—			—			—		—		(71	)
Amortization		—			(97	)		—			—			—		—		(97	)
Acquisition of business		—			1,624			—			—			—		—		1,624

Balance as of December 31, 2014	$	—		$	1,456		$	—		$	—		$	—	$	—	$	1,456

Other
Balance as of December 31, 2013	$	—		$	—		$	—		$	—		$	—	$	—	$	—
Amortization		—			—			—			(1	)		—		—		(1	)
Acquisition of business/development		—			—			—			115			6,000		22		6,137

Balance as of December 31, 2014	$	—		$	—		$	—		$	114		$	6,000	$	22	$	6,136

Total amortizable intangible assets
Balance as of December 31, 2013	$	—		$	—		$	—		$	—		$	—	$	—	$	—
Effect of change in foreign currency exchange rates		—			(459	)		—			—			—		—		(459	)
Amortization		(174	)		(312	)		(414	)		(1	)		—		—		(901	)
Acquisition of business		4,478			10,557			11,332			115			6,000		22		32,504

Balance as of December 31, 2014	$	4,304		$	9,786		$	10,918		$	114		$	6,000	$	22	$	31,144

Amortization expense for amortizable intangible assets for the years ended December 31, 2014, 2013 and 2012 was $0.9 million, $0 and $0.2 million, respectively. The Company expects amortization expense for its amortizable intangible assets for the years ending December 31, 2015, 2016, 2017, 2018, 2019 and thereafter to be approximately $3.4 million, $3.4 million, $3.4 million, $3.0 million, $2.7 million and $15.2 million, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Long-Term Obligations

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Long-Term Obligations

9. LONG-TERM OBLIGATIONS

Long-term debt consists of the following (in thousands):


	December 31,
	2014			2013
Senior Secured Notes collaterized by the Company’s assets, with interest payable semi-yearly based on a fixed annual interest rate of 11% with principal due in 2019	$	250,000		$	—
Note payable collaterized by GMSL’s assets, with interest payable monthly at LIBOR plus 3.65% and principal payable quarterly, maturing in 2018		16,732			—
Note payable collaterized by Schuff’s real estate, with interest payable monthly at LIBOR plus 4% and principal payable monthly with one final balloon payment of $1.9 million, maturing in 2019		4,635			—
Note payable collaterized by Schuff’s equipment, with interest payable monthly at LIBOR plus 4% and principal payable monthly with one final balloon payment of $1.9 million, maturing in 2019		8,333			—
Note payable collaterized by ANG’s assets, with interest payable monthly at 5.5% and principal payable monthly, maturing in 2018		810			—
Obligations under capital leases		65,176			—
Other		30			—

Subtotal		345,716			—
Original issue discount on Senior Secured Notes		(2,345	)		—

Subtotal		343,371			—
Less: Current portion of long-term obligations		(10,444	)

Total long-term obligations	$	332,927		$	—

Aggregate debt maturities are as follows (in thousands):


2015		10,595
2016		10,864
2017		11,138
2018		14,339
2019		262,474
Thereafter		36,306

	$	345,716

Aggregate maturities for the capital leases are as follows (in thousands):


2015	$	6,946
2016		6,954
2017		6,945
2018		10,716
2019		10,715
Thereafter		38,919

Total minimum principal & interest payments		81,195
Less: Amount representing interest		(16,019	)

Total capital lease obligations	$	65,176

The interest rates on the capital leases range from approximately 4% to 10.4%

11% Senior Secured Notes due 2019

On November 20, 2014, the Company issued $250.0 million in aggregate principal amount of 11% Senior Secured Notes due 2019 (“the 11% Notes). The 11% Notes were issued at 99.05% which resulted in a discount of $2.4 million. The net proceeds from the issuance of the 11% Notes were used to pay off the September Credit Facility entered into in connection with the GMSL acquisition. The 11% Notes were issued under an indenture dated November 20, 2014, by and among HC2, the guarantors party thereto and U.S. Bank National Association, a national banking association (“U.S. Bank”), as trustee (the “11% Notes Indenture”).

Maturity and Interest. The 11% Notes mature on December 1, 2019. The 11% Notes accrue interest at a rate of 11% per year. Interest on the 11% Notes is paid semi-annually on December 1 and June 1 of each year.

Ranking. The 11% Notes and the guarantees thereof will be HC2’s and certain of its direct and indirect domestic subsidiaries’ (the “Subsidiary Guarantors”) general senior secured obligations. The 11% Notes and the guarantees thereof will rank: (i) senior in right of payment to all of HC2’s and the Subsidiary Guarantors’ future subordinated debt; (ii) equal in right of payment with all of HC2’s and the Subsidiary Guarantors’ existing and future senior debt and effectively senior to all of its unsecured debt to the extent of the value of the collateral; and (iii) effectively subordinated to all liabilities of its non-guarantor subsidiaries.

Collateral. The 11% Notes and the guarantees thereof will be collaterized on a first-priority basis by substantially all of HC2’s assets and the assets of the Subsidiary Guarantors (except for certain “Excluded Assets,” and subject to certain “Permitted Liens,” each as defined in the 11% Notes Indenture). The 11% Notes Indenture permits the Company, under specified circumstances, to incur additional debt in the future that could equally and ratably share in the collateral. The amount of such debt is limited by the covenants contained in the 11% Notes Indenture.

Certain Covenants. The 11% Notes Indenture contains covenants limiting, among other things, the ability of HC2, and, in certain cases, HC2’s subsidiaries, to incur additional indebtedness; create liens; engage in sale-leaseback transactions; pay dividends or make distributions in respect of capital stock; make certain restricted payments; sell assets; engage in transactions with affiliates; or consolidate or merge with, or sell substantially all of its assets to, another person. These covenants are subject to a number of important exceptions and qualifications. HC2 is also required to maintain compliance with certain financial tests, including minimum liquidity and collateral coverage ratios. As of December 31, 2014, HC2 was in compliance with these covenants.

Redemption Premiums. The Company may redeem the 11% Notes at a redemption price equal to 100% of the principal amount of the 11% Notes plus a make-whole premium before December 1, 2016. The make-whole premium is the greater of (i) 1% of principal amount or (ii) the excess of the present value of redemption price at December 1, 2016 plus all required interest payments through December 1, 2016 over the principal amount. After December 1, 2016, the Company may redeem the 11% Notes at a redemption price equal to 100% of the principal amount plus accrued interest. The Company is required to make an offer to purchase the 11% Notes upon a change of control. The purchase price will equal 101% of the principal amount of the 11% Notes on the date of purchase plus accrued interest.

Terminated HC2 Credit Facilities

In 2014, HC2 entered into (i) the May Credit Facility to finance a portion of the acquisition of Schuff, (ii) the Novatel Acquisition Term Loan to finance the acquisition of Novatel and (iii) the September Credit Facility to finance a portion of the acquisition of GMSL. HC2 used a portion of the proceeds from the September Credit Facility to repay the May Credit Facility and the Novatel Acquisition Term Loan. HC2 used the net proceeds from the issuance of the 11% Notes to repay the September Credit Facility.

Prior to the payoff of the May Credit Facility, the Company made partial principal payments according to covenants within the agreement that required that portions of escrows received and proceeds from the exercise of warrants be used to pay down the May Credit Facility. In connection with those partial prepayments, the Company wrote off $0.1 million of deferred financing costs and $0.2 million of original issue discount in the second quarter to amortization of debt discount. In connection with those partial prepayments, the Company wrote off $0.1 million of deferred financing costs and $1.9 million of original issue discount in the third quarter of 2014 to loss on early extinguishment or restructuring of debt. In connection with the payoff of the remaining balance of the May Credit Facility, the Company incurred $0.9 million of prepayment premiums and wrote off $0.3 million of deferred financing costs and $2.5 million of original issue discount in the third quarter of 2014 to loss on early extinguishment or restructuring of debt. In connection with the payoff of the Novatel Acquisition Term Loan, the Company wrote off $0.4 million of deferred financing costs and $0.8 million of original issue discount in the third quarter of 2014 to loss on early extinguishment or restructuring of debt. In connection with the payoff of the September Credit Facility, the Company wrote off $0.5 million of deferred financing costs and $4.5 million of original issue discount, which is net of a credit for previous paid funding fees of $2.3 million during the fourth quarter of 2014 to loss on early extinguishment or restructuring of debt.

Schuff Credit Facilities

Schuff has a Credit and Security Agreement (“Schuff Facility”) with Wells Fargo Credit, Inc. (“Wells Fargo”), pursuant to which Wells Fargo agreed to advance up to a maximum amount of $50.0 million to Schuff. On October 21, 2014, Schuff amended the Schuff Facility, pursuant to which Wells Fargo allowed for the issuance of a note payable up to $10.0 million, collateralized by its machinery and equipment (“Real Estate (2) Term Advance (M&E)”) and the issuance of a note payable up to $5.0 million, collateralized by its real estate (“Real Estate (2) Term Advance (Working Capital)”). At December 31, 2014, Schuff had borrowed $8.4 million under the Real Estate (2) Term Advance (M&E). The Real Estate (2) Term Advance (M&E) has a 5 year amortization period requiring monthly principal payments and a final balloon payment at maturity. The Real Estate (2) Term Advance (M&E) has a floating interest rate of LIBOR plus 4.0% and requires monthly interest payments. At December 31, 2014, the Company had no borrowings under the Real Estate (2) Term Advance (Working Capital).

On May 6, 2014, Schuff amended the Schuff Facility, pursuant to which Wells Fargo extended the maturity date of the Schuff Facility to April 30, 2019, lowered the interest rate charged in connection with borrowings under the line of credit and allowed for the issuance of a note payable totaling $5.0 million, collateralized by its real estate (“Real Estate Term Advance”). The Real Estate Term Advance has a 5 year amortization period requiring monthly principal payments and a final balloon payment at maturity. The Real Estate Term Advance has a floating interest rate of LIBOR plus 4.0% and requires monthly interest payments. The proceeds of the Real Estate Term Advance, in conjunction with cash generated from operations and borrowings under the Schuff Facility, were used to pay the remaining balance of the previous real estate term loan issued under the Schuff Facility.

The Schuff Facility has a floating interest rate of LIBOR plus 3.00% (3.25% at December 28, 2014) and requires monthly interest payments. The Schuff Facility is secured by a first priority, perfected security interest in all of Schuff’s assets, excluding the real estate, and its present and future subsidiaries and a second priority, perfected security interest in all of Schuff’s real estate. The security agreements pursuant to which Schuff’s assets are pledged prohibit any further pledge of such assets without the written consent of the bank. The Schuff Facility contains various restrictive covenants. At December 31, 2014, the Company was in compliance with these covenants.

SHE has a Line of Credit Agreement (“International LOC”) with Banco General, S.A. (“Banco General”) in Panama pursuant to which Banco General agreed to advance up to a maximum amount of $2.5 million. The line of credit is secured by a first priority, perfected security interest in the SHE’s property and plant. The interest rate is 5.25% plus 1% of the special interest compensation fund (“FECI”). The line of credit contains covenants that, among other things, limit the SHE’s ability to incur additional indebtedness, change its business, merge, consolidate or dissolve and sell, lease, exchange or otherwise dispose of its assets, without prior written notice.

There was $46.1 million available and $3.9 million of outstanding letters of credit issued under the Schuff Facility at December 31, 2014. At December 31, 2014, Schuff had no borrowings and no outstanding letters of credit issued under its International LOC. There was $2.5 million available under Schuff’s International LOC at December 31, 2014.

GMSL Credit Facility

GMSL established a term loan with DVB Bank in January 2014 (the “GMSL Facility”). This GMSL facility has a 4.5 year term and bears interest at the rate of 3.65% plus the USD LIBOR rate. As of December 31, 2014, $16.7 million remained outstanding under the GMSL Facility. The GMSL Facility contains various restrictive covenants. At December 31, 2014, GMSL was in compliance with these covenants.

ANG Term Loan

ANG established a term loan with Signature Financial in October 2013. This term loan has a 5 year term and bears interest at the rate of 5.5%. As of December 31, 2014, $0.8 million remained outstanding under this term loan.

GMSL Capital Leases

GMSL is a party to two leases to finance the use of two vessels: the Innovator (such applicable lease, the “Innovator Lease”) and the Cable Retriever (such applicable lease, the “Cable Lease,” and together with the Innovator Lease, the “GMSL Leases”). The Innovator Lease expires in 2018, subject to the Company’s ability to extend the Innovator Lease for four one-year periods through 2022. The principal amount thereunder bears interest at the rate of approximately 10.4%. The Cable Lease expires in 2023. The principal amount thereunder bears interest at the rate of approximately 4.0%.

As of December 31, 2014, $65.2 million in aggregate principal amount remained outstanding under the GMSL Leases.

Redemption of 10% Notes, 10% Exchange Notes and 13% Notes and Satisfaction and Discharge of Related Indentures

On August 30, 2013, PTHI consummated the redemption of approximately $125.3 million of its 10% Senior Secured Notes due 2017 (the “10% Notes”) and 10% Senior Secured Exchange Notes due 2017 (the “10% Exchange Notes”). The $125.3 million consisted of approximately $12.7 million in aggregate principal amount of its 10% Notes at a redemption price equal to 106.50% of the principal amount thereof and $112.6 million in aggregate principal amount of its 10% Exchange Notes at a redemption price equal to 100.00% of the principal amount thereof, plus accrued but unpaid interest to the date of redemption. PTHI thereby satisfied and discharged the indenture governing the 10% Notes and 10% Exchange Notes (the “10% Notes Indenture”), as a result of which all of the obligations of PTHI, as the issuer of the 10% Notes and 10% Exchange Notes, and the guarantors of the 10% Notes and 10% Exchange Notes (including HC2) under the 10% Notes Indenture ceased to be of further effect (subject to certain exceptions) and the liens on collateral of PTHI and the guarantors of the 10% Notes and 10% Exchange Notes securing such notes were released. In connection with the August 2013 10% Notes and 10% Exchange Notes redemption, the Company incurred $0.8 million of premiums and other costs and wrote off $0.8 million and $14.8 million of deferred financing costs, respectively, and $0.1 million and $0.5 million of original issue discount, respectively, in the third quarter of 2013. Aside from the applicable redemption price, no other redemption premium was paid for the 10% Exchange Notes.

On August 30, 2013, PTHI and Primus Telecommunications Canada Inc. (“PTCI”) consummated the redemption of approximately $2.4 million in aggregate principal amount of its 13% Senior Secured Notes due 2016 (the “13% Notes”) at a redemption price equal to 106.50% of the principal amount thereof, plus accrued but unpaid interest to the date of redemption. PTHI and PTCI thereby satisfied and discharged the indenture governing the 13% Notes (the “13% Notes Indenture”), as a result of which all of the obligations of PTHI and PTCI, as the issuers of the 13% Notes, and the guarantors of the 13% Notes (including HC2) under the 13% Notes Indenture ceased to be of further effect (subject to certain exceptions). Liens on collateral securing the 13% Notes had previously been released in connection with the amendment of the 13% Notes Indenture that became effective on July 7, 2011. In connection with the August 2013 13% Notes redemption, the Company incurred $0.2 million of premiums and other costs and wrote off $3.7 million of deferred financing costs and $0.02 million of original issue discount in the third quarter of 2013.

Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

10. INCOME TAXES

The provisions (benefits) for income taxes for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands):


	Years Ended December 31,
	2014			2013			2012
Current: Federal	$	5,527		$	(256	)	$	—
State		1,600			147			33
Foreign		228			(7,333	)		(3,165	)

Subtotal Current		7,355			(7,442	)		(3,132	)
Deferred: Federal		(29,620	)		—			—
State		(2,219	)		—			—
Foreign		—			—			—

Subtotal Deferred		(31,838	)		—			—

Income tax (benefit) expense	$	(24,484	)	$	(7,442	)	$	(3,132	)

The US and foreign components of income (loss) from continuing operations before income taxes for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands):


	Years Ended December 31,
	2014			2013			2012
US	$	(41,256	)	$	(24,833	)	$	(43,821	)
Foreign		4,011			(221	)		(4,182	)

Income (loss) from continuing operations before income taxes	$	(37,245	)	$	(25,054	)	$	(48,003	)

The provision for (benefit from) income taxes differed from the amount computed by applying the federal statutory income tax rate to income (loss) before income taxes due to the following items for the years ended December 31, 2014, 2013 and 2012 (in thousands).


	Years Ended December 31,
	2014			2013			2012
Tax provision (benefit) at federal statutory rate	$	(13,036	)	$	(8,769	)	$	(16,801	)
Permanent differences		335			(536	)		7,660
State tax (net of federal benefit)		1,004			95			44
Effect of foreign tax rate change		(1,083	)		(235	)		(2,828	)
Foreign withholding taxes (net of federal)		231			(3,759	)		725
Reverse book loss on notes		—			—			19,767
Reverse AU book loss on notes		—			—			24,034
Uncertain tax positions		—			(3,575	)		—
Increase (decrease) in valuation allowance		(17,299	)		6,642			(41,692	)
Contingent Value Rights		—			(5,216	)		(452	)
Reversing deferred taxes		—			(365	)		3,890
Debt exchange costs		—			7,393			—
Transaction costs		—			(1,338	)		—
UK Sterwardship costs		—			1,455			2,509
199 Manufacturing Deduction		(594	)		—			—
Bargain Purchase Gain		(496	)		—			—
Officer Life Insurance Proceeds		(392	)		—			—
Legal Fees / Acquisitions		3,391			—			—
Foreign E&P		3,395			—			—
Other		60			766			12

Income tax (benefit) expense	$	(24,484	)	$	(7,442	)	$	(3,132	)

For the year ended December 31, 2014, the Company’s effective tax rate was favorably impacted by the release of valuation allowances totaling $17.3 million attributed to management’s conclusion that more-likely-than-not deferred tax assets would be realized. As discussed below, this conclusion is based on the consistent earnings history of Schuff and Global Marine and the impact of those earnings on the group’s future US taxable income.

Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax purposes. Net deferred tax balances are comprised of the following as of December 31, 2014 and 2013 (in thousands).


	December 31,
	2014			2013
Deferred tax assets	$	115,736		$	138,334
Valuation allowance		(69,020	)		(118,323	)
Deferred tax liabilities		(29,204	)		(20,011	)

Net deferred taxes	$	17,512		$	—

Certain fixed and intangible assets were marked to their fair market values as a result of our emergence from bankruptcy in 2009, and the associated fresh-start accounting resulted in a substantial decrease to our deferred tax asset, net operating loss carryforwards, a discharge of certain tax liabilities, and tax attribute reduction, as prescribed by Internal Revenue Code Section 108. The significant components of the Company’s deferred tax assets and liabilities are as follows as of December 31, 2014 and 2013 (in thousands):


	December 31,
	2014			2013
Current
Allowance for bad debt	$	351		$	905
Other		1,494			1,675
Valuation allowance		(144	)		(2,580	)

Total Current		1,701			—
Non-current
Basis difference in intangibles		(7,527	)		2,105
Capital loss carryforwards		0			1,726
Net operating loss carryforwards		26,440			96,230
Basis difference in fixed assets		4,763			15,560
Deferred compensation		7,127			—
UK Trading loss carryforward		52,932			—
Other		952			122
Valuation allowance		(68,876	)		(115,743	)

Total Non-current	$	15,811		$	—

In accordance with ASC Topic 740, the Company establishes valuation allowances for deferred tax assets that, in its judgment are not more-likely-than-not realizable. These judgments are based on projections of future income by individual tax jurisdiction. Changes in industry and economic conditions and the competitive environment may impact these projections. In accordance with ASC Topic 740, during each reporting period the Company assesses the likelihood that its deferred tax assets will be realized and determines if adjustments to its valuation allowances are appropriate. As a result of this assessment for the year ended December 31, 2014, the Company had a net release of valuation allowance to earnings of $17.3 million.

Management evaluated the continued need for a valuation allowance against deferred taxes of the Company for each of the reporting periods. Included in the assessment was HC2’s historical operating results over the prior three-year period. Also considered was the positive and negative evidence over the prior 3 years and other evidence of the newly acquired Schuff International Inc. and Global Marine Systems, Limited groups. Based on the evidence Management concluded that it is more likely than not that HC2’ deferred tax assets will be realized. On this basis, as of December 31, 2014, most US valuation allowances have been released. Valuation allowances have been maintained, however, against deferred taxes related to US capital loss carryforwards and deferred tax assets of the European entities, including GMSL’s UK non-tonnage tax trading losses.

As of December 31, 2014, the Company had foreign operating loss carryforwards of approximately $248.7 million, none of which are subject to expiration based on the passage of time. Of the foreign NOLs $230.1 million were generated by Global Marine’s historical non-tonnage tax operations.

At December 31, 2014, the Company projects United States operating loss carryforwards available to reduce future taxable income in the amount of $60.1 million, of which $43.3 million is subject to limitation under Section 382, and of which $16.8 million is not subject to the Section 382 limit. Net operating losses will expire periodically through 2034. Of the carryforward NOL, $7.9 million resulted from stock compensation plan deductions in excess of accrued compensation cost for financial reporting purposes. Per the requirements of paragraph ASC 740-20-45-11(d), when the excess deduction is realized by reducing taxes payable, the tax effected amount of the excess is to be recognized in shareholders’ equity.

Pursuant to the rules under Section 382 of the Internal Revenue Code, the Company believes that it underwent an ownership change on May 29, 2014. This conclusion is based on an analysis of Schedule 13D and Schedule 13G filings over the prior three years made with the SEC and the impact resulting from the May 29 preferred stock issuance. Due to the Section 382 limit resulting from the ownership change, approximately $149.0 million of the Company’s net operating losses will expire unused. The $149.0 million in expiring NOLs have been derecognized in the financial statements. The remaining pre-change NOL’s of $43.3 million recorded in the financial statements are subject to an annual limitation under IRC Sec. 382 of approximately $2.2 million.

The Company follows the provision of ASC No. 740-10, “Income Taxes” which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on a tax return. The Company is subject to challenge from various taxing authorities relative to certain tax planning strategies, including certain intercompany transactions as well as regulatory taxes.

Reconciliations of the period January 1, 2012 to December 31, 2012, and January 1, 2013 to December 31, 2013 and January 1, 2014 to December 31, 2014 balances of unrecognized tax benefits are as follows (in thousands):


	Years Ended December 31,
	2014			2013			2012
Balance at January 1,	$	35,196		$	66,161		$	86,206
Foreign currency adjustments		—			—			—
Statute expiration		—			(3,295	)		(1,172	)
Gross increases (decreases) of tax positions in prior period		(35,196	)		(28,178	)		(21,496	)
Audit resolution		—			—			—
Gross increases of tax positions in current period		—			508			2,623

Balance at December 31,	$	—		$	35,196		$	66,161

The decrease in 2014 to unrecognized tax benefits is due to the permanent impairment and de-recognition of NOLs under the May 2014, Section 382 limitation that were created by the uncertain positions. The total unrecognized tax benefits as of December 31, 2014, was $0.0.

The Company conducts business globally, and as a result, HC2 or one or more of its subsidiaries files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. Tax years 2002-2014 remain open for examination.

The company is currently under examination in various domestic and foreign tax jurisdictions. The open tax years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and expenses or the applicability of income tax credits for the relevant tax period. Given the nature of tax audits there is a risk that disputes may arise.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. COMMITMENTS AND CONTINGENCIES

Future minimum lease payments under non-cancellable operating leases as of December 31, 2014 are as follows (in thousands):


Year Ending December 31,	Operating Leases
2015	$	4,209
2016		3,914
2017		3,249
2018		2,433
2019		1,927
Thereafter		10,263

Total long-term obligations	$	25,995

The Company has contractual obligations to utilize an external vendor for certain customer support functions and to utilize network facilities from certain carriers with terms greater than one year.

The Company’s rent expense under operating leases was $5.7 million, $2.1 million and $2.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. The rent expense for the year ended December 31, 2014 includes costs associated with the terminations of facilities leases.

Litigation

On November 6, 2014, a putative stockholder class action complaint challenging the buyout by HC2 Holdings, Inc. of the noncontrolling interest in Schuff International, Inc. (“Schuff International”) was filed in the Court of Chancery of the State of Delaware, captioned Mark Jacobs v. Philip A. Falcone, Keith M. Hladek, Paul Voigt, Michael R. Hill, Rustin Roach, D. Ronald Yagoda, Phillip O. Elbert, HC2 Holdings, Inc., and Schuff International, Inc., Civil Action No. 10323 (the “Complaint”). On November 17, 2014, a second lawsuit was filed in the Court of Chancery of the State of Delaware, captioned Arlen Diercks v. Schuff International, Inc. Philip A. Falcone, Keith M. Hladek, Paul Voigt, Michael R. Hill, Rustin Roach, D. Ronald Yagoda, Phillip O. Elbert, HC2 Holdings, Inc., Civil Action No. 10359. The Complaints allege, among other things, that in connection with the buyout, the individual members of the Schuff International board of directors and HC2 Holdings, the controlling stockholder of Schuff, breached their fiduciary duties to members of the plaintiff class. The Complaints seek a rescission of the buyout and/or compensatory damages, as well as attorney’s fees and other relief. On February 19, 2015, the court consolidated the actions (now designated as Schuff International, Inc. Stockholders Litigation) and appointed lead plaintiff and counsel. No responsive pleading has been filed yet by the defendants. We believe that the allegations and claims set forth in the Complaint are without merit and intend to defend them vigorously.

On January 16, 2014, Xplornet Communications Inc. and Xplornet Broadband Inc. (“Xplornet”) instituted an action in the Ontario Superior Court of Justice styled Xplornet Communications Inc. and Xplornet Broadband Inc. vs. Inukshuk Wireless Inc., et al. Other defendants include Globility Communications Corporation (“Globility”), MIPPS Inc. (“MIPPS”), Primus Telecommunications Canada Inc. and the Company (sued under its previous name). In such action, Xplornet alleges that it entered into an agreement to acquire certain licenses for radio spectrum in Canada from Globility, a former subsidiary of the Company. Xplornet alleges that Globility agreed to sell Xplornet certain spectrum licenses in a Letter of Intent dated July 12, 2011 but then breached the Letter of Intent by selling the licenses to Inukshuk Wireless Inc. (“Inukshuk”) and that Globility further failed to negotiate with Xplornet in good faith. Xplornet also alleges that it reached an agreement with Inukshuk to purchase the licenses on June 26, 2012, but that Inukshuk breached that agreement by not completing the sale. Xplornet claims that, as a result of the foregoing, it has been damaged in the amount of $50 million. Xplornet also seeks injunctive relief against Inukshuk, pre and post-judgment interest, and costs. We intend to assert that we have meritorious defenses in the foregoing matter and we intend to defend ourselves vigorously.

The Company is indemnifying Primus Telecommunications Canada, Inc., Globility, and MIPPS subject to a full reservation of rights pursuant to the Equity Purchase Agreement among PTUS, Inc., PTCAN, Inc. Primus Telecommunications Group, Incorporated, Primus Telecommunications Holding, Inc., Lingo Holdings, Inc. and Primus Telecommunications International, Inc. dated as of May 10, 2013 in connection with this case.

On March 13, 2015, Inukshuk Wireless Partnership filed a cross claim against Globility, MIPPS, Primus Telecommunications Canada Inc., and the Company. Inukshuk asserts that if Inukshuk is found liable to Xplornet, then Inukshuk is entitled to contribution and indemnity, compensatory damages, interest, and costs from the Company. Inukshuk alleges that Globility represented and warranted that it owned the licenses at issue, that Globility held the licenses free and clear, and that no third party had any rights to acquire them. Inukshuk claims breach of contract and misrepresentation if the Court finds that any of these representations are untrue. We intend to assert that we have meritorious defenses to the cross claim and we intend to defend ourselves vigorously.

In December 2012, British Petroleum (“BP”) brought suit against Carboline Company (“Carboline”), Trinity Steel Fabricators, Inc. (“Trinity”), the Schuff’s subsidiary, Schuff Steel Company (“SSC”), Tecon Services, Inc. (“Tecon”) and Alfred Miller Contracting Company (“AMC”) in regards to fabrication work on a BP refinery in Indiana. BP alleged that the Schuff subsidiary and others defectively fireproofed certain pieces of steel used in a modernization project at the refinery. AMC and Tecon filed a Petition for Damages and Declaratory Judgment against Caroline, BP Corporation North America Inc., BP Products North America, Trinity, SSC, Schuff Steel-Gulf Coast, Inc., and others. In April 2014, the lawsuits were successfully mediated and a confidential settlement agreement was executed on June 16, 2014. Both cases were dismissed in July 2014.

The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company’s business, consolidated financial position, results of operations or cash flow. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its business, consolidated financial position, results of operations or cash flow.

Employee Retirement Plans

12 Months Ended

Dec. 31, 2014

Postemployment Benefits [Abstract]

Employee Retirement Plans

12. EMPLOYEE RETIREMENT PLANS

HC2

The Company sponsors a 401(k) employee benefit plan (the “401(k) Plan”) that covers substantially all United States based employees. Employees may contribute amounts to the 401(k) Plan not to exceed statutory limitations. The 401(k) Plan provides an employer matching contribution in cash of 50% of the first 6% of employee annual salary contributions capped at $6,000.

The matching contribution made during the years ended December 31, 2014, 2013 and 2012 was $88 thousand, $215 thousand and $368 thousand.

Schuff

Certain of Schuff’s fabrication and erection workforce are subject to collective bargaining agreements. Schuff contributes to union-sponsored, multi-employer pension plans. Contributions are made in accordance with negotiated labor contracts. The passage of the Multi-Employer Pension Plan Amendments Act of 1980 (the “Act”) may, under certain circumstances, cause Schuff to become subject to liabilities in excess of contributions made under collective bargaining agreements. Generally, liabilities are contingent upon the termination, withdrawal, or partial withdrawal from the plans. Under the Act, liabilities would be based upon Schuff’s proportionate share of each plan’s unfunded vested benefits.

Effective March 31, 2012, Schuff withdrew from the Steelworkers Pension Trust and incurred an initial withdrawal liability of approximately $2.6 million. During 2013, Schuff negotiated with the Steelworkers Pension Trust and reduced the liability to approximately $2.4 million. Schuff is required to make quarterly payments of approximately $0.2 million through September 1, 2015. The remaining balance of the withdrawal liability at December 31, 2014 was approximately $0.6 million, and is included in other liabilities in the consolidated balance sheets.

Schuff made contributions to the California Ironworkers Field Pension Trust (“Field Pension”) of $2.5 million during the year ended December 31, 2014. Schuff’s funding policy is to make monthly contributions to the plan. Schuff’s employees represent less than 5% of the participants in the Field Pension. As of December 31, 2014, Schuff has not undertaken to terminate, withdraw, or partially withdraw from the Field Pension.

To replace the benefits associated with the Steelworkers Pension Trust upon Schuff’s withdrawal from that plan, Schuff agreed to make profit share contributions to a 401(k) defined contribution retirement savings plan (the “Union 401k”) for union steelworkers. Contributions made to the Union 401k by union steelworkers are 100% vested immediately. Union steelworkers are eligible for the profit share contributions after completing a probationary period (640 hours of work) and are 100% vested in the profit share contributions three years from the date of hire. Union steelworkers are not required to make contributions to the Union 401(k) to receive the profit share contributions. Profit share contributions are made for each hour worked by each eligible union steelworker at a rate of $0.55 per hour. Profit share contributions amounted to approximately $89,000 for the year ended December 31, 2014.

Schuff maintains a 401(k) retirement savings plan which covers eligible employees and permits participants to contribute to the plan, subject to Internal Revenue Code restrictions and which features matching contributions. The matching contributions for the year ended December 31, 2014 was $373 thousand.

GMSL

GMSL has established a number of pension schemes and contribute to other pension schemes around the world covering many of its employees. The principal funds are those in the UK comprising The Global Marine Systems Pension Plan, The Global Marine Personal Pension Plan (established in 2008), and Global Marine Systems (Guernsey) Pension Plan. A small number of employees are members of the Merchant Navy Officers Pension Fund, a centralized defined benefit scheme to which the GMSL contributes.

The Global Marine Systems Pension Plan, the Global Marine Systems (Guernsey) Pension Plan and the Merchant Navy Officers Pension Fund are defined benefit plans with assets held in separate trustee administered funds. However as the Global Marine Systems (Guernsey) Pension Plan, which operates both a Career Average Re-valued Earnings (“CARE”) defined benefit section and a defined contribution section is small with few members, the scheme is accounted for as defined contribution type plan. The Global Marine Personal Pension Plan is predominantly of the money purchase type.

The Global Marine Systems Pension Plan was a hybrid, exempt approved, occupational pension scheme for the majority of staff, which provides pension and death in service benefits. The defined benefit section of the Plan provided final salary benefits up to December 31, 2003 and CARE benefits from January 1, 2004. In 2008 the defined contribution section was closed to new contributions and all the accumulated funds attributable to the defined contribution members were transferred to a Contracted in Money Purchase Scheme (“CIMP”) set up by GMSL. These funds were held on behalf of the defined contribution members and were all transferred to the Global Marine Personal Pension plan of each member on or before June 30, 2009. From August 31, 2006 the defined benefit section of the Scheme closed to future accrual and active members were offered membership of the existing defined contribution section (with some enhanced benefits).

Global Marine Systems Pension Plan—Defined Benefit Section

The defined benefit section of the Global Marine Systems Plan (prior to its closure on August 31, 2006) was contributory, with employees contributing between 5% and 8% (depending on their age) and the employer contributing at a rate of 9.2% of pensionable salary plus deficit contributions of $1.5 million per year.

The defined benefit section of the Global Marine Systems Pension Plan is funded by the payment of contributions determined with the advice of qualified independent actuaries on the basis of triennial valuations using the projected unit method. The most recent full actuarial valuation was conducted as of December 31, 2013 for the purpose of determining the funding requirements of the plan. An actuarial valuation was conducted as of December 31, 2014 for the purpose of meeting US GAAP requirements. The main assumptions used were that Retail Price Inflation would be 3.7% per year, Consumer Price Inflation would be 2.7% per year, the rate of return on investments (pre-retirement) would be would be 5.5% per year, the rate of return on investments (post-retirement) would be 4.5% per year, with pensions increasing by 3.0% per year. At the actuarial valuation date the market value of the defined benefit section’s assets amounted to $146.7 million. On a statutory funding objective basis the value of these assets covered the value of technical provisions by 74%.

Following the 2013 actuarial valuation contributions are payable by GMSL as follows:

•

$0.5 million payable every month during calendar year 2014;

•

$0.5 million payable every month during calendar years 2015 to 2018;

•

$0.6 million payable every month during calendar years 2019 to May 2021;

•

$0.2 million payable in June 2021;

•

GMSL will pay 10% of profits after tax before dividends. This will be paid up to two years following the year end to enable budgeting and cash flow control; and

•

GMSL will pay a cash sum equal to 50% of any future dividend payments.

Global Marine Personal Pension Plan

This is a defined contribution pension scheme and is contributory from the employee; the rate of contributions is split as follows:

•

ex CARE employees contributing between 2.5% and 7.5% and the employer contributing at a matching rate plus an additional 5% fixed contributions and

•

defined contribution employees contributing between 2% and 7.5% and the employer contributing at a matching rate.

For the period September 22 to December 31, 2014, GMSL made matching contributions of $0.4 million.

Merchant Navy Officers Pension Fund

The Merchant Navy Officers Pension Fund is funded by the payment of contributions determined with the advice of qualified independent actuaries on the basis of triennial valuations using the projected unit method. The most recent available full actuarial valuation was conducted as at March 31, 2012 for the purpose of determining the funding requirements of the plan. An actuarial valuation was conducted as of December 31, 2014 for the purpose of meeting US GAAP requirements. The main assumptions used were that Retail Price Inflation would be 3.2% per year, Consumer Price Inflation would be 2.2% per year, the rate of return on investments (pre-retirement) would be 5.7% per year, the rate of return on investments (post-retirement) would be 4.0% per year and the rate of salary increases 4.2% per year with pensions increasing by 3.0% per year.

At the actuarial valuation date the market value of the total assets in the scheme amounted to $3.5 billion of which 0.05594% ($1.9 million) relates to the Global Marine Systems Group. On an on-going basis the value of these assets, together with the deficit contributions receivable of $528 million, covered the value of pensioner liabilities, preserved pension liabilities for former employees and the value of benefits for active members based on accrued service and projected salaries, to the extent of 94%.

Following the 2012 actuarial valuation, contributions are payable by the Group as follows:

•

Increase Employer contributions to 20% of pensionable salaries from October 1, 2013.

Global Marine Systems (Guernsey) Pension Plan

The defined benefit section of the Guernsey Scheme is contributory, with employees contributing between 5% and 8% (depending on their age), the employer ceased contributing after July 2004. The defined contribution section is also contributory, with employees contributing between 2% and 7.5% (depending on their age and individual choice) and the employer contributing at a matching rate. The defined benefit section of the Guernsey Scheme is funded by the payment of contributions determined with the advice of qualified independent actuaries on the basis of triennial valuations using the projected unit method.

The most recent full actuarial valuation was conducted as of December 31, 2010 for the purpose of determining the funding requirements of the plan. An actuarial valuation was conducted as of December 31, 2014 for the purpose of meeting US GAAP requirements. The principal actuarial assumptions used by the actuary were investment returns of 5.7% per year pre-retirement, 4.8% per year post-retirement, inflation of 3.7% per year and pension increases of 3.4% per year.

At the valuation date the market value of the assets amounted to $2.0 million. The results show a past service shortfall of $0.6 million corresponding to a funding ratio of 76%.

Following the actuarial valuation as at December 31, 2010, contributions are as follows:

•

19.5% of Pensionable Salaries from January 1, 2012 for future final salary benefits and management expenses.

•

Seven annual contributions of $0.1 million from December 31, 2014 to 2020.

Collectively hereafter, the defined benefit plans will be referred to as the “Plans”.

Obligations and Funded Status

For all company sponsored defined benefit plans and our portion of the Merchant Navy Officers Pension Fund, the benefit obligation is the “projected benefit obligation,” the actuarial present value, as of our December 31 measurement date, of all benefits attributed by the pension benefit formula to employee service rendered to that date. The amount of benefit to be paid depends on a number of future events incorporated into the pension benefit formula, including estimates of the average life of employees/survivors and average years of service rendered. It is measured based on assumptions concerning future interest rates and future employee compensation levels.

The following table presents this reconciliation and shows the change in the projected benefit obligation for the Plans for the period from September 22 through December 31, 2014:


(in thousands)
Projected benefit obligation at September 22, 2014	$	206,735
Service cost - benefits earning during the period		14
Interest cost on projected benefit obligation		2,017
Contributions		8
Actuarial loss		12,480
Benefits paid		(2,167	)

Projected benefit obligation at December 31, 2014	$	219,087

The following table presents the change in the value of the assets of the Plans for the period from September 22 through December 31, 2014 and the plans’ funded status at December 31, 2014:


(in thousands)
Fair value of plan assets at September 22, 2014	$	160,812
Actual return on plan assets		14,873
Benefits paid		(2,167	)
Contributions		6,641
Foreign currency gain (loss)		1,718

Fair value of plan assets at December 31, 2014		181,877

Unfunded status at end of year	$	37,210

Amounts recognized in the consolidated balance sheets at December 31, 2014 are listed below:


(in thousands)
Pension Liability	$	37,210

Net amount recognized	$	37,210

The accumulated benefit obligation for the Plans represents the actuarial present value of benefits based on employee service and compensation as of a certain date and does not include an assumption about future compensation levels.

As of December 31, 2014 contributions of $0.1 million were due to be payable to the Plans.

Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income

Periodic Benefit Costs

The aggregate net pension cost recognized in the consolidated statements of operations was $357,000 for the period from September 22, 2014 through December 31, 2014.

The following table presents the components of net periodic benefit cost:


(in thousands)
Service cost—benefits earning during the period	$	14
Interest cost on projected benefit obligation		1,978
Expected return on assets		(1,923	)
Actuarial (gain) loss		(426	)

Net pension benefit	$	(357	)

Of the amounts presented above, cost of $68,000 has been included in cost of revenue and gain of $1.1 million included in other comprehensive income for the year ended December 31, 2014.

In determining the net periodic pension cost for the Plans, GMSL used the following weighted average assumptions: the pension increase assumption is that for benefits increasing with RPI limited to 5% per year, to which the majority of the Plan’s liabilities relate. The Group employs a building block approach in determining the long-term rate of return of pension plan assets. Historical markets are studied and assets with higher volatility are assumed to generate higher returns consistent with widely accepted capital market principles. The overall expected rate of return on assets is then derived by aggregating the expected return for each asset class over the actual asset allocation for the Plans as of December 31, 2014.


	Year Ended December 31, 2014
Discount rate		3.60	%
Rate of compensation increases (Merchant Navy Officers Pension Fund only)		4.50	%
Rate of future RPI inflation		3.00	%
Rate of future CPI inflation		2.00	%
Pension increases in payment		2.85	%
Long-term rate of return on assets		4.43	%

Other Changes in Benefit Obligations Recognized in Other Comprehensive Income

The following tables present the after-tax changes in benefit obligations recognized in comprehensive income and the after-tax prior service credits that were amortized from accumulated other comprehensive income into net periodic benefit costs for the period from September 22, 2014 through December 31, 2014:


(in thousands)
Net loss (gain)	$	(1,129	)

Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	(1,129	)


(in thousands)
Actuarial (gain) loss	$	(1,129	)

Total recognized in other comprehensive (income) loss		(1,129	)

Balance at December 31, 2014	$	(1,129	)

The estimated loss for pension benefits that will be amortized from accumulated other comprehensive income into net periodic benefit cost in fiscal year 2015 will be $172,000.

Estimated Future Benefit Payments

Expected benefit payments are estimated using the same assumptions used in determining the Plan’s benefit obligation at December 31, 2014. Because benefit payments will depend on future employment and compensation levels, average years employed, average life spans, and payment elections, among other factors, changes in any of these factors could significantly affect these expected amounts. The following table provides expected benefit payments under our pension and postretirement plans:


(in thousands)
2015	$	5,736
2016		5,885
2017		6,037
2018		6,194
2019		6,355
Thereafter		34,336

	$	64,543

Aggregate expected contributions in the coming fiscal year are expected to be $6.3 million.

Plan Assets—Description of plan assets and investment objectives

The assets of the Plans consist primarily of private and public equity, government and corporate bonds, among others. The asset allocations of the Plans are maintained to meet regulatory requirements where applicable. Any contributions to the Plans are made to a pension trust for the benefit of plan participants.

The principal investment objectives are to ensure the availability of funds to pay pension benefits as they become due under a broad range of future economic scenarios, to maximize long-term investment return with an acceptable level of risk based on our pension and postretirement obligations, and to be broadly diversified across and within the capital markets to insulate asset values against adverse experience in any one market. Each asset class has broadly diversified characteristics. Substantial biases toward any particular investing style or type of security are sought to be avoided by managing the aggregation of all accounts with portfolio benchmarks. Asset and benefit obligation forecasting studies are conducted periodically, generally every two to three years, or when significant changes have occurred in market conditions, benefits, participant demographics or funded status. Decisions regarding investment policy are made with an understanding of the effect of asset allocation on funded status, future contributions and projected expenses.

The plans’ weighted-average asset targets and actual allocations as a percentage of plan assets, including the notional exposure of future contracts by asset categories at December 31, are as follows:


	Target			December 31, 2014
Liability hedging		25.0	%		21.5	%
Equities		24.2	%		24.6	%
Hedge funds		24.7	%		25.5	%
Corporate bonds		13.8	%		14.9	%
Emerging markets		5.6	%		5.0	%
Property		3.7	%		4.0	%
Other		3.0	%		4.5	%

					100.0	%

Investment Valuation

GMSL’s plan investments related to the Global Marine Systems Pension Plan consist of the following at December 31, 3014:


(in thousands)
Equities	$	45,198
Liability Hedging Assets		39,626
Hedge Funds		40,853
Corporate Bonds		20,238
Property		8,847
Other		14,777

Total market value of assets		169,539
Present value of liabilities		(206,853	)

Net pension liability	$	(37,314	)

GMSL’s plan investments related to the Merchant Navy Officers Pension Fund consist of the following at December 31, 2014:


(in thousands)
Equities	$	699
Hedge Funds		435
Corporate Bonds		715
LDI Strategy		1,255

Total market value of assets		3,104
Present value of liabilities		(3,000	)

Net pension asset (liability)	$	104

Investments are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Generally, investments are valued based on information provided by fund managers to our trustee as reviewed by management and its investment advisers.

Investments in securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the year. If no sale was reported on that date, they are valued at the last reported bid price. Investments in securities not traded on a national securities exchange are valued using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Over-the-counter (OTC) securities and government obligations are valued at the bid price or the average of the bid and asked price on the last business day of the year from published sources where available and, if not available, from other sources considered reliable. Depending on the types and contractual terms of OTC derivatives, fair value is measured using a series of techniques, such as Black-Scholes option pricing model, simulation models or a combination of various models.

Alternative investments, including investments in private equities, private bonds, limited partnerships, hedge funds, real assets and natural resources, do not have readily available market values. These estimated fair values may differ significantly from the values that would have been used had a ready market for these investments existed, and such differences could be material. Private equity, private bonds, limited partnership interests, hedge funds and other investments not having an established market are valued at net asset values as determined by the investment managers, which management has determined approximates fair value. Private equity investments are often valued initially based upon cost; however, valuations are reviewed utilizing available market data to determine if the carrying value of these investments should be adjusted. Such market data primarily includes observations of the trading multiples of public companies considered comparable to the private companies being valued. Investments in real assets funds are stated at the aggregate net asset value of the units of these funds, which management has determined approximates fair value. Real assets and natural resource investments are valued either at amounts based upon appraisal reports prepared by appraisers or at amounts as determined by an internal appraisal performed by the investment manager, which management has determined approximates fair value.

Purchases and sales of securities are recorded as of the trade date. Realized gains and losses on sales of securities are determined on the basis of average cost. Interest income is recognized on the accrual basis. Dividend income is recognized on the ex-dividend date.

The following table sets forth by level, within the fair value hierarchy, the pension assets and liabilities at fair value as of December 31, 2014 for the Global Marine Systems Pension Plan:


(in thousands)	Level 1		Level 2		Total
Equities	$	—	$	45,198	$	45,198
Liability Hedging Assets		—		39,626		39,626
Hedge Funds		—		40,853		40,853
Corporate Bonds		—		20,238		20,238
Property		—		8,847		8,847
Other		14,777		—		14,777

Total Plan Net Assets	$	14,777	$	154,762	$	169,539

The following table sets forth by level, within the fair value hierarchy, the pension assets and liabilities at fair value as of December 31, 2014 for the Merchant Navy Officers Pension Fund:


(in thousands)	Level 3		Total
Equities	$	699	$	699
Hedge Funds		435		435
Corporate Bonds		715		715
LDI Strategy		1,255		1,255

Total Plan Net Assets	$	3,104	$	3,104

The table below set forth a summary of changes in the fair value of the Level 3 pension assets for the period ended December 31, 2014 for the Merchant Navy Officers Pension Fund:


(in thousands)
Balance at December 31, 2014	$	2,908
Actual return on plan assets		165
Contributions		59
Benefits paid		(28	)

Balance at December 31, 2014	$	3,104

Share-Based Compensation

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

13. SHARE-BASED COMPENSATION

On April 11, 2014, HC2’s Board of Directors adopted the HC2 Holdings, Inc. 2014 Omnibus Equity Award Plan (the “Omnibus Plan”), which was approved by our stockholders at the annual meeting of stockholders held on June 12, 2014. The Omnibus Plan provides that no further awards will be granted pursuant to HC2’s Management Compensation Plan, as amended (the “Prior Plan”). However, awards that had been previously granted pursuant to the Prior Plan will continue to be subject to and governed by the terms of the Prior Plan. As of December 31, 2014, there were 472,002 shares of HC2 common stock underlying outstanding awards under the Prior Plan.

The Compensation Committee (the “Committee”) of the Board of Directors of HC2 administers HC2’s Omnibus Plan and the Prior Plan and has broad authority to administer, construe and interpret the plans.

The Omnibus Plan provides for the grant of awards of non-qualified stock options, incentive (qualified) stock options, stock appreciation rights, restricted stock awards, restricted stock units, other stock based awards, performance compensation awards (including cash bonus awards) or any combination of the foregoing. HC2 typically issues new shares of common stock upon the exercise of stock options, as opposed to using treasury shares. The Omnibus Plan authorizes the issuance of up to 5,000,000 shares of HC2 common stock, subject to adjustment as provided in the Omnibus Plan.

The Company follows guidance which addresses the accounting for share-based payment transactions whereby an entity receives employee services in exchange for either equity instruments of the enterprise or liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. The guidance generally requires that such transactions be accounted for using a fair-value based method and share-based compensation expense be recorded, based on the grant date fair value, estimated in accordance with the guidance, for all new and unvested stock awards that are ultimately expected to vest as the requisite service is rendered.

There were 3,452,767 and 690,948 options granted during the years ended December 31, 2014 and 2013, respectively. Of the 3,452,767 options granted during the year ended December 31, 2014, 3,350,946 of such options were granted to Philip Falcone, pursuant to a standalone option agreement entered in connection with Mr. Falcone’s appointment as Chairman, President and Chief Executive Officer of HC2, and not pursuant to the Omnibus Plan. The weighted average fair value at date of grant for options granted during the year ended December 31, 2014, 2013 and 2012 was $2.03, $0.26 and $1.63, respectively, per option. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions shown as a weighted average for the year:


	Years Ended December 31,
	2014	2013	2012
Expected option life	5.5 - 6 years	4 - 5.75 years	4 - 5.75 years
Risk-free interest rate	1.61 - 2.73%	1.17 - 1.73%	0.57 - 0.89%
Expected volatility	36.74 - 40.50%	35.55 - 37.23%	35.83 - 36.64%
Dividend yield	0%	0%	0%

Total share-based compensation expense recognized by the Company was $11.5 million, $2.3 million and $5.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. Most of HC2’s stock awards vest ratably during the vesting period. The Company recognizes compensation expense for equity awards, reduced by estimated forfeitures, using the straight-line basis.

Restricted Stock

A summary of HC2’s restricted stock activity during the years ended December 31, 2014 and 2013 is as follows:


	Shares			Weighted Average Grant Date Fair Value
Unvested—January 1, 2013		286,208		$	12.91
Granted		20,000		$	11.89
Vested		(283,626	)	$	12.79
Forfeitures		(82	)	$	15.60

Unvested—December 31, 2013		22,500		$	13.59
Granted		502,172		$	4.21
Vested		(185,970	)	$	5.25
Forfeitures		—		$	—

Unvested—December 31, 2014		338,702		$	4.26

As of December 31, 2014, the unvested restricted stock represented $1.2 million of compensation expense that is expected to be recognized over the weighted average remaining vesting period of 1.5 years. The number of shares of unvested restricted stock expected to vest is 338,702.

In January 2014, the Board of Directors of HC2 accelerated the vesting of 15,000 RSUs, awarded to certain non-employee directors in conjunction with their departure from the Board of Directors. During the year ended December 31, 2013, the Board of Directors of HC2 accelerated the vesting of 98,280 RSUs awarded to certain employees as part of severance agreements. In addition, on December 31, 2013, the Board of Directors of HC2 accelerated the vesting of 28,833 RSUs, awarded to certain non-employee directors in conjunction with their departure from the Board of Directors. Share-based compensation expense recognized during the year ended December 31, 2013 from the accelerated vesting was $1.5 million.

Stock Options

A summary of HC2’s stock option activity during the years ended December 31, 2014 and 2013 is as follows:


	Shares			Weighted Average Exercise Price
Outstanding—January 1, 2013		212,244		$	9.24
Granted		690,948		$	3.64
Exercised		(75,564	)	$	5.93
Forfeitures		(237,769	)	$	9.07

Outstanding—December 31, 2013		589,859		$	3.17
Granted		3,452,767		$	4.30
Exercised		(230,300	)	$	2.43
Forfeitures		(239,185	)	$	4.40

Outstanding—December 31, 2014		3,573,141		$	4.27

Eligible for exercise		1,260,643		$	4.22

As a result of certain special cash dividends on HC2’s issued and outstanding common stock paid in 2012 and 2013, the Company reduced the exercise price and increased the number of shares of common stock issuable upon exercise of such options. The Company has evaluated the accounting impact of modification accounting under ASC 718 and concluded that the modification of the terms of such instruments did not result in a significant change in fair value before and after the modification date. For the year ended December 31, 2013, there were 650,948 options granted (with a weighted average exercise price of $3.13) and 203,654 options forfeited (with a weighted average exercise price of $10.02) included in the chart above related to these adjustments.

The following table summarizes the intrinsic values and remaining contractual terms of HC2’s stock options (in thousands):


	Intrinsic Value		Weighted Average Remaining Life in Years
Options outstanding—December 31, 2014	$	14,828		9.5
Options exercisable—December 31, 2014	$	5,292		9.3

During the year ended December 31, 2014, the intrinsic value of the exercised options was $0.3 million. As of December 31, 2014, the Company had 2,312,498 unvested stock options outstanding of which $4.0 million of compensation expense is expected to be recognized over the weighted average remaining vesting period of 1.7 years. The number of unvested stock options expected to vest is 2,312,498 shares, with a weighted average remaining life of 9.5 years, a weighted average exercise price of $4.27, and an intrinsic value of $14.8 million.

Equity

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Equity

14. EQUITY

As of December 31, 2014 and 2013, there were 23,813,085 and 14,225,919 shares of common stock outstanding, respectively. As of December 31, 2014 and 2013, there were 41,000 and 0 shares of preferred stock outstanding, respectively.

Class A and B Warrants

In July 2009, HC2 issued (A) Class A warrants (the “Class A Warrants”) to purchase shares of HC2’s common stock, which were divided into three separate series (Class A-1, Class A-2 and Class A-3 Warrants), each of which series consisted of 1,000,000 warrants to purchase an original aggregate amount of up to 1,000,000 shares of HC2 common stock; and (B) Class B warrants (the “Class B Warrants” and, together with the Class A Warrants, the “Warrants”) to purchase an original aggregate amount of up to 1,500,000 shares of HC2 common stock. In connection with the issuance of the Warrants, HC2 entered into a Warrant Agreement for each of the Class A Warrants and the Class B Warrants, in each case with Broadridge Financial Solutions, Inc. (successor-in-interest to StockTrans, Inc.), as warrant agent. The Warrants had a five-year term which expired on July 1, 2014. As a result of special cash dividends paid in 2012 and 2013, antidilution adjustment provisions were triggered and the original exercise price and the number of shares of HC2 common stock issuable upon exercise were adjusted.

There were 878,940 Class A-1 Warrants exercised during the year ended December 31, 2014, resulting in the issuance of 3,855,289 shares of HC2’s common stock. There were 780,753 Class A-2 Warrants exercised during the year ended December 31, 2014, resulting in the issuance of 3,424,641 shares of HC2’s common stock. There were 5,709 Class A-3 Warrants exercised during the year ended December 31, 2014, resulting in the issuance of 25,041 shares of HC2’s common stock. The warrants expired on July 1, 2014.

Preferred and Common Stock

On May 29, 2014, HC2 issued 30,000 shares of Series A Preferred Stock and 1,500,000 shares of common stock, the proceeds of which were used to pay for a portion of the purchase price for the acquisition of Schuff. On September 22, 2014, HC2 issued 11,000 shares of Series A-1 Preferred Stock. Each share of Series A-1 Preferred Stock is convertible at a conversion price of $4.25. In connection with the issuance of the Series A-1 Preferred Stock, HC2 amended the certificate of designation governing the Series A Preferred Stock on September 22, 2014, which changed the applicable conversion price from $4.25 to $4.00, reflected the issuance of the Series A-1 Preferred Stock as a class of preferred stock which ranks at parity with the Series A Preferred Stock and made certain other changes to conform the terms of the Series A Preferred Stock to those of the Series A-1 Preferred Stock. As disclosed in Note 22—“Subsequent Events,” on January 5, 2015, HC2 issued 14,000 shares of Series A-2 Convertible Participating Preferred Stock (the “Series A-2 Preferred Stock” and, together with the Series A Preferred Stock and Series A-1 Preferred Stock, the “Preferred Stock”). Each share of Series A-2 Preferred Stock is convertible at a conversion price of $8.25. In connection with the issuance of the Series A-2 Preferred Stock, HC2 amended the certificates of designation governing the Series A Preferred Stock and Series A-1 Preferred Stock on January 5, 2015, which reflected the issuance of the Series A-2 Preferred Stock as a class of preferred stock which ranks at parity with the Series A Preferred Stock and Series A-1 Preferred Stock and made certain other changes to conform the terms of the Series A Preferred Stock and Series A-1 Preferred Stock to those of the Series A-2 Preferred Stock. The conversion prices for the Preferred Stock are subject to adjustments for dividends, certain distributions, stock splits, combinations, reclassifications, reorganizations, mergers, recapitalizations and similar events. The Preferred Stock will accrue a cumulative quarterly cash dividend at an annualized rate of 7.5%. The accrued value of the Preferred Stock will accrete quarterly at an annualized rate of 4% that will be reduced to 2% or 0% if the Company achieves specified rates of growth measured by increases in its net asset value. The preferred stock is classified as temporary equity outside of stockholder’s equity due to its redemption provisions.

The Company recorded a beneficial conversion feature on both of its Series A and Series A-1 Preferred Stock as a result of the fair market value of the Company’s common stock exceeding the conversion price. The Company recorded a $0.3 million beneficial conversion feature on its Series A-1 Preferred Stock which was calculated using the intrinsic value ($4.36—$4.25) multiplied by the number of convertible common shares ($11,000,000 / $4.25). The Company recorded a $0.4 million beneficial conversion feature on its Series A Preferred Stock as a result of the adjustment to the conversion price from $4.25 to $4.00. The beneficial conversion feature was calculated using the intrinsic value ($4.05—$4.00) multiplied by the number of convertible common shares ($30,000,000 / $4.00). The beneficial conversion features are being accreted over seven years so that the preferred stock is at its face value at the end of its redemption period.

Each share of Preferred Stock may be converted by the holder into common stock at any time based on the then-applicable conversion price. On the seventh anniversary of the issue date of the Series A Preferred Stock, holders of the Preferred Stock shall be entitled to cause the Company to redeem the Preferred Stock at the accrued value per share plus accrued but unpaid dividends. Each share of Preferred Stock that is not so redeemed will be automatically converted into shares of common stock at the conversion price then in effect. Upon a change of control, holders of the Preferred Stock shall be entitled to cause HC2 to redeem their Preferred Stock at a price per share equal to the greater of (i) the accrued value of the Preferred Stock, which amount would be multiplied by 150% in the event of a change in control occurring on or prior to the third anniversary of the issue date of the Series A Preferred Stock plus and accrued but unpaid dividends and (ii) the value that would be received if the share of Preferred Stock were converted into common stock immediately prior to the change of control.

At any time after the third anniversary of the issue date of the Series A Preferred Stock, HC2 may redeem the Preferred Stock, in whole but not in part, at a price per share generally equal to 150% of the accrued value per share plus accrued but unpaid dividends. After the third anniversary of the issue date of the Series A Preferred Stock, HC2 may force conversion of the Preferred Stock into common stock if the common stock’s thirty-day volume-weighted average price (“VWAP”) exceeds 150% of the then-applicable conversion price and the common stock’s daily VWAP exceeds 150% of the then-applicable conversion price for at least twenty trading days out of the thirty trading day period used to calculate the thirty-day VWAP.

Dividends

During 2014, HC2’s Board of Directors declared cash and PIK dividends with respect to HC2’s issued and outstanding preferred stock, as presented in the following table (Total Dividend amount presented in thousands):

Declaration Date

June 30, 2014

September 30, 2014

December 31, 2014

Holders of Record Date

June 30, 2014

September 30, 2014

December 31, 2014

Payment/Accrual Date

July 15, 2014

October 15, 2014

January 15, 2015

Total Dividend

307

897

777

During 2013, HC2’s Board of Directors declared a special cash dividend with respect to HC2’s issued and outstanding common stock, as presented in the following table (Total Dividend amount presented in thousands):


	Cash Dividend Per Share
	$8.50
Declaration Date		August 7, 2013
Holders of Record Date		August 20, 2013
Payment Date		August 27, 2013
Total Dividend	$	119,788

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Fair Value of Financial Instruments and Derivatives	12 Months Ended
Fair Value of Financial Instruments and Derivatives	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments and Derivatives	15. FAIR VALUE OF FINANCIAL INSTRUMENTS AND DERIVATIVES The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, inventory, costs and recognized earnings in excess of billings, accounts payable, accrued expenses, billings in excess of costs and recognized earnings, and other current assets and liabilities approximate fair value due to relatively short periods to maturity. The Company’s investments in available-for-sale securities, recorded at fair value using quoted market prices (a Level 1 approach), as of December 31, 2014 was $4.9 million. The estimated aggregate fair value of the Company’s debt, based on significant other observable inputs (a Level 2 approach) approximated $338.1 million at December 31, 2014.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related Parties

12 Months Ended

Dec. 31, 2014

Related Parties

16. RELATED PARTIES

During the year ended December 31, 2014, Schuff had the following related party transactions:

•

Purchased a home on behalf of an executive for $1.7 million which is recorded as an asset held for sale

•

Sold 25% investment in United Steel to a former executive in return for 253,039 restricted shares of Schuff and $5.0 million in cash

•

Purchased 74,625 shares from the Chairman of the Board and former executives for $2.0 million

GMSL has investments in various entities for which it exercises significant influence. Summary of transactions during the year and balances outstanding at year-end is as follows (in thousands):


Year Ended December 31, 2014
Revenue	$	6,625
Operating costs		900
Capital lease interest		436
Dividends received		3,714

December 31, 2014
Accounts receivable	$	2,585
Obligations under capital leases		42,296
Trade creditors		436

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Operating Segment and Related Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Operating Segment and Related Information

17. OPERATING SEGMENT AND RELATED INFORMATION

The Company currently has two primary reportable geographic segments—United States and United Kingdom; and Other. The Company has six reportable operating segments based on management’s organization of the enterprise—Telecommunications, Life Sciences, Manufacturing, Marine Services, Utilities and Other. The Company also has non-operating Corporate segment. Net revenue and long-lived assets by geographic segment is reported on the basis of where the entity is domiciled. All inter-segment revenues are eliminated. The Company has no single customer representing greater than 10% of its revenues.

Summary information with respect to the Company’s geographic and operating segments is as follows (in thousands):


	Years Ended December 31,
	2014			2013			2012
Net Revenue by Geographic Region
United States	$	442,472		$	108,563		$	100,753
United Kingdom		93,417			122,123			202,206
Other		7,313			—			—

Total	$	543,202		$	230,686		$	302,959

Net Revenue by Segment
Telecommunications	$	161,953		$	230,686		$	302,959
Manufacturing		348,318			—			—
Utilities		1,839			—			—
Marine Services		31,092			—			—

Total	$	543,202		$	230,686		$	302,959

Income (Loss) from Operations
Telecommunications		(1,840	)		(19,705	)		(17,187	)
Life Sciences		(4,762	)		—			—
Manufacturing		26,359			—			—
Utilities		(491	)		—			—
Marine Services		4,368			—			—
Other		(8,002	)		—			—
Corporate		(30,058	)		(19,431	)		(34,709	)

Total	$	(14,426	)	$	(39,136	)	$	(51,896	)

Capital Expenditures
Telecommunications	$	42		$	1,390		$	1,452
Manufacturing		5,039			—			—
Utilities		803			—			—
Marine Services		(863	)		—			—
Other (1)		798			11,187			29,999
Corporate		—			—			296

Total	$	5,819		$	12,577		$	31,747

1)	Other also includes capital expenditures related to discontinued operations.

The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations.


	December 31,
	2014		2013		2012
Long-term investments
Life Sciences	$	1,916	$	—	$	—
Marine Services		26,401		—		—
Corporate		20,357		—		—

Total	$	48,674	$	—	$	—


	December 31,
	2014		2013		2012
Property, Plant and Equipment—Net
United States	$	87,091	$	2,303	$	2,335
United Kingdom		147,323		659		—
Other (1)		5,437		—		62,980

Total	$	239,851	$	2,962	$	65,315


	December 31,
	2014		2013		2012
Total Assets
Telecommunications	$	24,501	$	33,397	$	44,710
Life Sciences		11,007		—		—
Manufacturing		281,067		—		—
Utilities		25,391		—		—
Marine Services		283,948		—		—
Other (1)		6,369		7,423		223,899
Corporate		91,765		46,860		32,581

Total	$	724,048	$	87,680	$	301,190

(1)	Other also includes property, plant and equipment—net and total assets related to discontinued operations.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

Quarterly Results of Operations

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations

18. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following is a tabulation of the unaudited quarterly results of operations for the years ended December 31, 2014 and 2013.


	Quarters Ended
	(in thousands, except per share amounts)
	March 31, 2014		June 30, 2014		September 30, 2014		December 31, 2014
Services revenue	$	43,354	$	42,178	$	41,321	$	66,191
Sales revenue		—		54,408		138,112		157,638

Net revenue		43,354		96,586		179,433		223,829
Cost of revenue—services		41,107		39,530		39,464		54,855
Cost of revenue—sales		—		43,330		119,175		134,025

Total cost of revenue		41,107		82,860		158,639		188,880
Income (loss) from operations		(4,087)		(1,097)		75		(9,317)
								—
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—common holders		(4,180)		(3,788)		(17,440)		7,982
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—preferred holders		—		—		—		3,416
Income (loss) from discontinued operations		17		27		(106)		37
Gain (loss) from sale of discontinued operations		(784)		—		663		—

Net income (loss)—basic	$	(4,947)	$	(3,761)	$	(16,883)	$	11,435

Net income (loss)—diluted	$	(4,947)	$	(3,761)	$	(16,883)	$	11,435

Weighted average common shares outstanding-basic		14,631		16,905		23,372		23,813

Weighted average common shares outstanding-diluted		14,631		16,905		23,372		28,962

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—common holders	$	(0.29)	$	(0.22)	$	(0.75)	$	0.34
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—preferred holders		—		—		—		0.34
Income (loss) from discontinued operations		—		—		—		—
Gain (loss) from sale of discontinued operations		(0.05)		—		0.03		—

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.34)	$	(0.22)	$	(0.72)	$	0.68

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—common holders	$	(0.29)	$	(0.22)	$	(0.75)	$	0.28
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—preferred holders		—		—		—		0.34
Income (loss) from discontinued operations		—		—		—		—
Gain (loss) from sale of discontinued operations		(0.05)		—		0.03		—

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.34)	$	(0.22)	$	(0.72)	$	0.62


	Quarters Ended
	(in thousands, except per share amounts)
	March 31, 2013		June 30, 2013		September 30, 2013		December 31, 2013 (1)
Net services revenue	$	58,789	$	58,621	$	61,077	$	52,199
Cost of revenue—services		55,516		55,436		58,752		50,611
Income (loss) from operations		(5,502)		(11,491)		(4,113)		(18,030)
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.		(5,592)		2,921		(867)		(14,074)
Income (loss) from discontinued operations		2,379		(604)		(21,493)		97
Gain (loss) from sale of discontinued operations		—		135,045		15,650		(1,856)

Net income (loss)—basic	$	(3,213)	$	137,362	$	(6,710)	$	(15,833)

Net income (loss)—diluted	$	(3,213)	$	137,362	$	(6,710)	$	(15,833)

Weighted average common shares outstanding-basic		13,909		13,972		14,077		14,222

Weighted average common shares outstanding-diluted		13,909		14,436		14,077		14,222

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$	(0.40)	$	0.21	$	(0.06)	$	(0.99)
Income (loss) from discontinued operations		0.17		(0.04)		(1.53)		0.01
Gain (loss) from sale of discontinued operations		—		9.67		1.11		(0.13)

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.23)	$	9.84	$	(0.48)	$	(1.11)

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$	(0.40)	$	0.20	$	(0.06)	$	(0.99)
Income (loss) from discontinued operations		0.17		(0.04)		(1.53)		0.01
Gain (loss) from sale of discontinued operations		—		9.35		1.11		(0.13)

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.23)	$	9.51	$	(0.48)	$	(1.11)

(1)

Income (loss) from operations includes depreciation expense of $12.0 million for the period July 1, 2012—December 31, 2013, when the property and equipment of ICS was included in assets held for sale. In accordance with U.S. GAAP, held for sale assets are not depreciated. When ICS was no longer considered to be held for sale, we were required to record all unrecorded depreciation in the fourth quarter of 2013.

Quarterly and year-to-date computations of per share amounts are made independently; therefore, the sum of per share amounts for the quarters may not agree with per share amounts for the year.

Backlog	12 Months Ended
Backlog	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Backlog	19. BACKLOG Schuff’s backlog was $357.0 million ($305.3 million under contracts or purchase orders and $51.7 million under letters of intent) at December 31, 2014. Schuff’s backlog increases as contract commitments, letters of intent, notices to proceed and purchase orders are obtained, decreases as revenues are recognized and increases or decreases to reflect modifications in the work to be performed under the contracts, notices to proceed, letters of intent or purchase orders. Schuff’s backlog can be significantly affected by the receipt, or loss, of individual contracts. Approximately $203.1 million, representing 56.9% of Schuff’s backlog at December 31, 2014, was attributable to five contracts, letters of intent, notices to proceed or purchase orders. If one or more of these large contracts or other commitments are terminated or their scope reduced, Schuff’s backlog could decrease substantially.

Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

20. DISCONTINUED OPERATIONS

Discontinued Operations—year ended December 31, 2014 and 2013

On April 17, 2013, the Company completed the sale of its BLACKIRON Data segment to Rogers Communications Inc., a Canadian telecommunications company, and its affiliates for CAD$200.0 million (or approximately USD$195.6 million giving effect to the currency exchange rate on the day of sale). The Company recorded a $135.0 million gain from the sale of this segment during the second quarter of 2013. In addition, the purchase agreement contains customary indemnification obligations, representations, warranties and covenants for a transaction of this nature. In connection with the closing of the transaction, CAD$20.0 million (or approximately USD$19.5 million giving effect to the currency exchange rate on the day of sale) was retained from the purchase price and placed into escrow until July 17, 2014 for purposes of satisfying potential indemnification claims pursuant to the purchase agreement. The escrow was recorded as part of prepaid expenses and other current assets in the consolidated balance sheet as of December 31, 2013 and was released pursuant to its terms on July 17, 2014.

On July 31, 2013, the Company completed the sale of Lingo, Inc., iPrimus, USA, Inc., 3620212 Canada Inc., PTCI, Telesonic Communications Inc., and Globility Communications Corporation to affiliates of York Capital Management, an investment firm (together “York”), for $129 million. The sale of PTI was also contemplated as part of this transaction but was deferred pending receipt of regulatory approval of such sale. The closing of the sale of PTI, which constituted the remainder of our North America Telecom segment, was completed on July 31, 2014 upon receipt of the necessary regulatory approval. The Company recorded a $13.8 million gain from the sale of this segment during the year ended December 31, 2013. In addition, the purchase agreement contains customary indemnification obligations, representations, warranties and covenants for a transaction of this nature. The Company received $126.0 million, net of $15.25 million held in escrow as part of the initial closing, with an additional $3.0 million held in escrow to be paid upon closing of the sale of PTI. The escrow was recorded as part of prepaid expenses and other current assets in the consolidated balance sheet as of December 31, 2013.

Pursuant to the terms of the purchase agreement, $6.45 million of the purchase price was placed in escrow to be released 14 months after the closing date, subject to any deductions required to satisfy indemnification obligations of HC2 under the purchase agreement, which amount was released to the Company in October 2014. In addition, $4.0 million of the purchase price was placed in escrow to cover any payments required in connection with the post-closing working capital and cash adjustments, of which $3.2 million was disbursed to the Company and $0.8 million was disbursed to York upon completion of such adjustments in February 2014. Furthermore, $4.8 million of the purchase price was placed in escrow to cover certain tax liabilities, which escrow amount will be released after a positive ruling with respect to the underlying matter is received or 30 days after expiration of the applicable statute of limitations relating to the underlying matter. The $4.8 million escrow deposit is recorded in other assets in the consolidated balance sheets, however it is fully reserved as it appears that the escrow in its entirety may be at risk.

The Company evaluated the remaining carrying value of North America Telecom, i.e. PTI, in the third quarter of 2013 which resulted in it being higher than its fair value less costs to sell by $0.3 million and have attributed such adjustment to the long-lived assets of PTI. As the adjustment is related to North America Telecom, it has been classified within income (loss) from discontinued operations, net of tax on the consolidated statements of operations for the year ended December 31, 2013.

Discontinued Operations—year ended December 31, 2012

On May 31, 2012, the Company completed the sale of its Australian segment to M2 Telecommunications Group Ltd. (“M2”), an Australian telecommunications company, for approximately AUD$192.4 million (or approximately USD$195.7 million giving effect to a currency hedge that the Company put in place in connection with the transaction). The Company recorded a $98.6 million gain from the sale of this segment during the second quarter of 2012. In connection with the closing of the transaction, $9.8 million was retained from the purchase price and placed into escrow until May 31, 2013 for purposes of satisfying potential indemnification claims pursuant to the purchase agreement. The purchase price was also subject to a customary post-closing working capital adjustment. In the fourth quarter of 2012, the Company and M2 settled on a working capital adjustment and the escrow was released. The Company received $5.4 million and M2 received $4.4 million. The $4.4 million was recorded as an adjustment to the gain that was recorded in the second quarter of 2012, which resulted in a net gain for the year ended December 31, 2012 of $94.3 million.

On June 28, 2012, the Board of Directors of HC2 committed to dispose of ICS and as a result classified ICS as a discontinued operation. In the fourth quarter of 2012, the Company began discussions with potential buyers for BLACKIRON Data and North America Telecom. The special committee of the Board of Directors believed that the Company’s focus was best served on these potential deals as they would provide a greater return to our shareholders. These events, although unanticipated at the time, took precedence over the ICS sale process, and therefore resulted in the need to extend the allowable period to complete the sale of ICS under ASC 360 to beyond one year. In conjunction with the commitment to dispose of ICS and classification of ICS as a discontinued operation, the Company evaluated the carrying value of ICS in the second quarter of 2012 which resulted in it being higher than its fair value less costs to sell by $10.3 million and have attributed such adjustment to the long-lived assets of ICS. The Company performed the same analysis as of December 31, 2012 and determined that the fair value less costs to sell exceeded the carrying value and therefore no additional adjustment was required. In December 2013, based on management’s assessment of the requirements under ASC 360, it was determined that ICS no longer met the criteria of a held for sale asset. On February 11, 2014, the Board of Directors officially ratified management’s December 2013 assessment, and reclassified ICS from held for sale to held and used, effective December 31, 2013. As a result, ICS became classified as a continuing operation.

Summarized operating results of the discontinued operations are as follows (in thousands):


	Years Ended December 31,
	2014			2013			2012
Net revenue	$	7,530		$	132,515		$	375,264
Operating expenses		7,610			119,392			343,263

Income from operations		(80	)		13,123			32,001
Interest expense		(17	)		(11,362	)		(24,621	)
Gain (loss) on early extinguishment or restructuring of debt		—			(21,124	)		(21,682	)
Interest income and other income (expense)		(60	)		(51	)		283
Foreign currency transaction loss		—			(378	)		(2,550	)

Loss before income tax		(157	)		(19,792	)		(16,569	)
Income tax benefit (expense)		132			171			(4,956	)

Income from discontinued operations	$	(25	)	$	(19,621	)	$	(21,525	)

Summarized assets and liabilities of the remaining portion of North America Telecom, PTI, classified as held for sale as of December 31, 2013 are as follows (in thousands):


	North America Telecom (1)
	December 31, 2013
Accounts receivable	$	670
Prepaid expenses and other current assets		839
Long-lived assets and other non-current assets		4,820

Assets held for sale	$	6,329

Accounts payable	$	869
Accrued interconnection costs		420
Accrued expenses and other liabilities		3,534

Liabilities held for sale	$	4,823

(1)	Included in the table above is the remaining goodwill of the US reporting unit of $3.7 million and customer relationships of $0.4 million, applicable to PTI.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

+ Details

Basic and Diluted Income (Loss) Per Common Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Basic and Diluted Income (Loss) Per Common Share

21. BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE

Basic income (loss) per common share is calculated by dividing income (loss) attributable to common shareholders by the weighted average common shares outstanding during the period. Diluted income per common share adjusts basic income per common share for the effects of potentially dilutive common share equivalents.

The Company had no dilutive common share equivalents during the years ended December 31, 2014, 2013 and 2012 due to the results of operations being a loss from continuing operations, net of tax. For the years ended December 31, 2014, 2013 and 2012, the following were potentially dilutive but were excluded from the calculation of diluted loss per common share due to their antidilutive effect:

Year Ended December 31, 2014

•

0.2 million shares issuable upon exercise of stock options and RSUs under the Prior Plan and Omnibus Plan.

Year Ended December 31, 2013

•

0.6 million shares issuable upon exercise of stock options and RSUs under the Prior Plan; and

•

19.5 million shares issuable upon exercise of Warrants.

Year Ended December 31, 2012

•

0.5 million shares issuable upon exercise of stock options and RSUs under the Prior Plan;

•

6.2 million shares issuable upon exercise of Warrants; and

•

3.7 million shares issuable upon exercise of contingent value rights.

A calculation of basic income (loss) per common share to diluted income (loss) per common share is set forth below (in thousands, except per share amounts):


	Years Ended December 31,
	2014		2013		2012
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.		(14,010)		(17,612)		(44,853)
Income (loss) from discontinued operations		(25)		(19,621)		(21,525)
Gain (loss) from sale of discontinued operations		(121)		148,839		94,265

Net income (loss)—basic	$	(14,156)	$	111,606	$	27,887

Net income (loss)—diluted	$	(14,156)	$	111,606	$	27,887

Weighted average common shares outstanding-basic		19,729		14,047		13,844

Weighted average common shares outstanding-diluted		19,729		14,047		13,844

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$	(0.71)	$	(1.25)	$	(3.24)
Income (loss) from discontinued operations		—		(1.40)		(1.55)
Gain (loss) from sale of discontinued operations		(0.01)		10.60		6.81

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.72)	$	7.95	$	2.02

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$	(0.71)	$	(1.25)	$	(3.24)
Income (loss) from discontinued operations		—		(1.40)		(1.55)
Gain (loss) from sale of discontinued operations		(0.01)		10.60		6.81

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.72)	$	7.95	$	2.02

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2014
Subsequent Events [Abstract]
Subsequent Events	22. SUBSEQUENT EVENTS Series A-2 Preferred Stock Issuance As discussed in Note 14—“Equity,” on January 5, 2015, HC2 issued 14,000 shares of Series A-2 Preferred Stock. Each share of Series A-2 Preferred Stock is convertible at a conversion price of $8.25. In connection with the issuance of the Series A-2 Preferred Stock, HC2 amended the certificates of designation governing the Series A Preferred Stock and Series A-1 Preferred Stock on January 5, 2015, which reflected the issuance of the Series A-2 Preferred Stock as a class of preferred stock which ranks at parity with the Series A Preferred Stock and Series A-1 Preferred Stock and made certain other changes to conform the terms of the Series A Preferred Stock and Series A-1 Preferred Stock to those of the Series A-2 Preferred Stock.

Schedule ll Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2014

Valuation and Qualifying Accounts [Abstract]

Schedule ll Valuation and Qualifying Accounts

SCHEDULE II

HC2 HOLDINGS, INC.

VALUATION AND QUALIFYING ACCOUNTS

Activity in the Company’s allowance accounts for the years ended December 31, 2014, 2013 and 2012 was as follows (in thousands):


	Doubtful Accounts Receivable
Period	Balance at Beginning of Period		Charged to Costs and Expenses			Deductions			Other			Balance at End of Period
2012	$	7,552	$	4,819		$	7,411		$	(3,189	)(1)	$	1,771
2013	$	1,771	$	1,507		$	2,816		$	2,014	(2)	$	2,476
2014	$	2,476	$	403		$	(119	)				$	2,760

	Deferred Tax Asset Valuation
Period	Balance at Beginning of Period		Charged to Costs and Expenses			Deductions			Other			Balance at End of Period
2012	$	144,611	$	4,883		$	—		$	—		$	149,494
2013	$	149,494	$	(31,171	)	$	—		$	—		$	118,323
2014	$	118,323	$	(49,303	)	$	—		$	—		$	69,020

(1)	Other contains the subtraction of the allowance for doubtful accounts receivable that was sold in conjunction with the sale of the Company’s Australian segment ($1,859), and the Company’s allowance for doubtful accounts receivable of ICS ($1,330) in assets held for sale.

(2)	Other contains the addition of the Company’s allowance for doubtful accounts receivable of ICS ($2,111) that was reclassified out of assets held for sale as of December 31, 2013 and the subtraction of the Company’s allowance for doubtful accounts of PTI ($97) in assets held for sale.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Principles of Consolidation

Discontinued Operations

Presentation of Taxes Collected

Foreign Currency Transactions

Foreign Currency Translation

Cash and Cash Equivalents

Accounts Receivable

Inventories

Inventories

Schuff—Inventories, primarily steel components, are stated at the lower of cost or market under the first-in, first-out method.

Short-term Investments

Short-term Investments—The current investments are classified as available-for-sale securities and the change in value is recognized within accumulated other comprehensive income (loss).

Long-term Investments

Accounting for Income Taxes

Deferred Financing Costs

Property, Plant and Equipment

Goodwill and Other Intangible Assets

Valuation of Long-lived Assets

Use of Estimates

Revenue and Cost Recognition

Revenue and Cost Recognition

Charter hire—rentals from short term operating leases in respect of vessels are recognized as revenue on a straight line basis over the term of the lease.

A loss is recognized immediately if the expected costs during any contract exceed expected revenues. Amounts billed in advance of revenue recognition are recorded as deferred revenue.

Pensions

Share-Based Compensation

Concentration of Credit Risk

Income (Loss) Per Common Share

Reclassification

Reclassification —Certain previous year amounts have been reclassified to conform with current year presentations, as related to the reporting of new balance sheet line items.

Newly Adopted Accounting Principles

Newly Adopted Accounting Principles

New Accounting Pronouncements

•

Identifies the contract(s) with a customer (step 1).

•

Identifies the performance obligations in the contract (step 2).

•

Determines the transaction price (step 3).

•

Allocates the transaction price to the performance obligations in the contract (step 4).

•

Recognizes revenue when (or as) the entity satisfies a performance obligation (step 5).

Accounts Receivable and Contracts in Progress (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Schedule of Accounts Receivable

Accounts receivable consist of the following (in thousands):


	December 31,
	2014			2013
Contract receivables:
Contracts in progress	$	112,929		$	—
Unbilled retentions		32,850			—
Trade receivables		8,344			21,456
Other receivables		195			—
Allowance for doubtful accounts		(2,760	)		(2,476	)

	$	151,558		$	18,980

Costs and Recognized Earnings in Excess of Billings and Billings in Excess of Costs and Recognized Earnings on Uncompleted Contracts

Costs and recognized earnings in excess of billings on uncompleted contracts and billings in excess of costs and recognized earnings on uncompleted contracts consist of the following:


	December 31,
	2014			2013
Costs incurred on contracts in progress	$	531,129		$	—
Estimated earnings		73,540			—

		604,669			—
Less progress billings		618,530			—

	$	(13,861	)	$	—

The above is included in the accompanying condensed consolidated balance sheet under the following captions:
Costs and recognized earnings in excess of billings on uncompleted contracts		28,098			—
Billings in excess of costs and recognized earnings on uncompleted contracts		(41,959	)		—

	$	(13,861	)	$	—

Inventories (Tables)

12 Months Ended

Dec. 31, 2014

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories consist of the following (in thousands):


	December 31,
	2014		2013
Raw materials	$	12,956	$	—
Work in process		1,779		—
Finished goods		240		—

	$	14,975	$	—

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Preliminary Purchase Price Allocation

The preliminary purchase price allocation is as follows (in thousands):


Cash and cash equivalents	$	(627)
Investments		1,714
Accounts receivable		130,622
Costs and recognized earnings in excess of billings on uncompleted contracts		27,126
Prepaid expenses and other current assets		3,079
Inventories		14,487
Assets held for sale		—
Property and equipment, net		85,662
Goodwill		24,612
Trade names		4,478
Other assets		2,947

Total assets acquired		294,100
Accounts payable		37,621
Accrued payroll and employee benefits		11,668
Accrued expenses and other current liabilities		12,532
Billings in excess of costs and recognized earnings on uncompleted contracts		65,985
Accrued income taxes		1,202
Accrued interest		76
Current portion of long-term debt		15,460
Liabilities held for sale		—
Long-term debt		4,375
Deferred tax liability		7,815
Other liabilities		604
Noncontrolling interest		4,365

Total liabilities assumed		161,703

Enterprise value		132,397
Less fair value of noncontrolling interest		53,647

Purchase price attributable to controlling interest	$	78,750

Intangible Assets Subject to Amortization

Intangible assets subject to amortization consisted of the following (in thousands):


	Schuff			GMSL			ANG			Pansend			Other		Corporate		Total
Trade names
Balance as of December 31, 2013	$	—		$	—		$	—		$	—		$	—	$	—	$	—
Effect of change in foreign currency exchange rates		—			(49	)		—			—			—		—		(49	)
Amortization		(174	)		(91	)		(263	)		—			—		—		(528	)
Acquisition of business		4,478			1,137			6,300			—			—		—		11,915

Balance as of December 31, 2014	$	4,304		$	997		$	6,037		$	—		$	—	$	—	$	11,338

Customer relationships
Balance as of December 31, 2013	$	—		$	—		$	—		$	—		$	—	$	—	$	—
Effect of change in foreign currency exchange rates		—			(339	)		—			—			—		—		(339	)
Amortization		—			(124	)		(151	)		—			—		—		(275	)
Acquisition of business		—			7,796			5,032			—			—		—		12,828

Balance as of December 31, 2014	$	—		$	7,333		$	4,881		$	—		$	—	$	—	$	12,214

Developed technology
Balance as of December 31, 2013	$	—		$	—		$	—		$	—		$	—	$	—	$	—
Effect of change in foreign currency exchange rates		—			(71	)		—			—			—		—		(71	)
Amortization		—			(97	)		—			—			—		—		(97	)
Acquisition of business		—			1,624			—			—			—		—		1,624

Balance as of December 31, 2014	$	—		$	1,456		$	—		$	—		$	—	$	—	$	1,456

Other
Balance as of December 31, 2013	$	—		$	—		$	—		$	—		$	—	$	—	$	—
Amortization		—			—			—			(1	)		—		—		(1	)
Acquisition of business/development		—			—			—			115			6,000		22		6,137

Balance as of December 31, 2014	$	—		$	—		$	—		$	114		$	6,000	$	22	$	6,136

Total amortizable intangible assets
Balance as of December 31, 2013	$	—		$	—		$	—		$	—		$	—	$	—	$	—
Effect of change in foreign currency exchange rates		—			(459	)		—			—			—		—		(459	)
Amortization		(174	)		(312	)		(414	)		(1	)		—		—		(901	)
Acquisition of business		4,478			10,557			11,332			115			6,000		22		32,504

Balance as of December 31, 2014	$	4,304		$	9,786		$	10,918		$	114		$	6,000	$	22	$	31,144

Schedule of Unaudited Consolidated Pro Forma Results of Operations


	Years Ended December 31,
	2014			2013
Net revenue	$	854,152		$	801,417
Net income (loss) from continuing operations		15,860			12,707
Net income (loss) from discontinued operations		(2,984	)		(32,722	)
Gain (loss) from sale of discontinued operations		(121	)		148,839
Net income (loss) attributable to HC2 Holdings, Inc.	$	12,755		$	128,824

ANG [Member]

Schedule of Preliminary Purchase Price Allocation

The preliminary purchase price allocation is as follows (in thousands):


Cash and cash equivalents	$	15,704
Accounts receivable		306
Prepaid expenses and other current assets		31
Inventories		27
Property and equipment, net		1,921
Customer contracts		2,700
Trade names		6,300
Other assets		2

Total assets acquired		26,991
Accounts payable		49
Accrued payroll and employee benefits		5
Accrued expenses and other current liabilities		26
Billings in excess of costs and recognized earnings on uncompleted contracts		114
Current portion of long-term debt		34
Long-term debt		870
Deferred tax liability		3,530

Total liabilities assumed		4,628

Fair value of net assets acquired		22,363
Purchase price		17,689

Excess of fair value of net assets over purchase price	$	4,674

Intangible Assets Subject to Amortization

The acquired amortizable intangible assets and the related estimated useful lives consist of the following (in thousands):


	Preliminary Estimated Useful Lives		Preliminary Estimated Value August 1, 2014
Customer contracts		10 years	$	2,700
Trade names		10 years		6,300

Total intangible assets			$	9,000

Schuff [Member]

Intangible Assets Subject to Amortization

The acquired amortizable intangible assets and the related estimated useful lives consist of the following (in thousands):


	Preliminary Estimated Useful Lives		Preliminary Estimated Value May 29, 2014
Trade names		15 years	$	4,478

Total intangible assets			$	4,478

Global Marine Systems Limited [Member]

Schedule of Preliminary Purchase Price Allocation

The preliminary purchase price allocation is as follows (in thousands):


Cash and cash equivalents	$	62,555
Accounts receivable		26,183
Prepaid expenses and other current assets		9,886
Inventories		7,395
Restricted cash		4,682
Property and equipment, net		156,976
Customer contracts		7,796
Trade name		1,137
Developed technology		1,624
Investments		24,266
Other assets		7,482

Total assets acquired		309,982
Accounts payable		8,965
Accrued expenses and other current liabilities		34,767
Accrued income taxes		1,251
Current portion of long-term debt		8,140
Long-term debt		78,356
Pension liability		45,923
Deferred tax liability		1,013
Other liabilities		1,179

Total liabilities assumed		179,594

Enterprise value		130,388
Less fair value of noncontrolling interest		3,803

Purchase price attributable to controlling interest	$	126,585

Intangible Assets Subject to Amortization

The acquired amortizable intangible assets and the related estimated useful lives consist of the following (in thousands):


	Preliminary Estimated Useful Lives		Preliminary Estimated Value September 22, 2014
Customer contracts		15 years	$	7,796
Trade name		3 years		1,137
Developed technology		4 years		1,624

Total intangible assets			$	10,557

Investments (Tables)

12 Months Ended

Dec. 31, 2014

Investments Schedule [Abstract]

Summary of Equity Method Investments Information

Summarized information for the entities in which we have equity method investments is as follows (in thousands):


Income Statement Data
Income Statement Data	Year Ended December 31, 2014
Net Revenue	$	151,594
Gross Profit	$	35,783
Income from continuing operations	$	5,142
Net income	$	5,142


Balance Sheet Summary
Balance Sheet Summary	December 31, 2014
Current assets	$	269,864
Noncurrent assets	$	149,995
Current liabilities	$	179,552
Noncurrent liabilities	$	18,063

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Summary of Property, Plant and Equipment

Property, plant and equipment consist of the following (in thousands):


	December 31,
	2014		2013
Land	$	17,795	$	—
Building and leasehold improvements		29,520		386
Plant and transportation equipment		6,410		—
Cable-ships and submersibles		143,270		—
Equipment, furniture and fixtures		35,229		5,683
Construction in progress		12,150		—

		244,374		6,069
Less accumulated depreciation and amortization		4,523		3,107

	$	239,851	$	2,962

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill by reporting unit for the years ended December 31, 2014 and 2013 are as follows (in thousands):


					Disposed Reporting Units
	Schuff		ICS		United States			Canada			Total
Balance as of January 1, 2013	$	—	$	—	$	26,582		$	34,162		$	60,744
Effect of change in foreign currency exchange rates		—		—		—			(776	)		(776	)
Disposition of business		—		—		(22,568	)		(33,386	)		(55,954	)
Allocation (to) from disposal group		—		3,378		(4,014	)		—			(636	)

Balance as of December 31, 2013	$	—	$	3,378	$	—		$	—		$	3,378
Effect of change in foreign currency exchange rates		—		—		—			—			—
Acquisition of business		24,612		—		—			—			24,612

Balance as of December 31, 2014	$	24,612	$	3,378	$	—		$	—		$	27,990

Long-Term Obligations (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consists of the following (in thousands):


	December 31,
	2014			2013
Senior Secured Notes collaterized by the Company’s assets, with interest payable semi-yearly based on a fixed annual interest rate of 11% with principal due in 2019	$	250,000		$	—
Note payable collaterized by GMSL’s assets, with interest payable monthly at LIBOR plus 3.65% and principal payable quarterly, maturing in 2018		16,732			—
Note payable collaterized by Schuff’s real estate, with interest payable monthly at LIBOR plus 4% and principal payable monthly with one final balloon payment of $1.9 million, maturing in 2019		4,635			—
Note payable collaterized by Schuff’s equipment, with interest payable monthly at LIBOR plus 4% and principal payable monthly with one final balloon payment of $1.9 million, maturing in 2019		8,333			—
Note payable collaterized by ANG’s assets, with interest payable monthly at 5.5% and principal payable monthly, maturing in 2018		810			—
Obligations under capital leases		65,176			—
Other		30			—

Subtotal		345,716			—
Original issue discount on Senior Secured Notes		(2,345	)		—

Subtotal		343,371			—
Less: Current portion of long-term obligations		(10,444	)

Total long-term obligations	$	332,927		$	—

Schedule of Aggregate Debt Maturities

Aggregate debt maturities are as follows (in thousands):


2015		10,595
2016		10,864
2017		11,138
2018		14,339
2019		262,474
Thereafter		36,306

	$	345,716

Schedule of Aggregate Maturities for Capital Leases

Aggregate maturities for the capital leases are as follows (in thousands):


2015	$	6,946
2016		6,954
2017		6,945
2018		10,716
2019		10,715
Thereafter		38,919

Total minimum principal & interest payments		81,195
Less: Amount representing interest		(16,019	)

Total capital lease obligations	$	65,176

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Provisions (Benefits) for Income Taxes

The provisions (benefits) for income taxes for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands):


	Years Ended December 31,
	2014			2013			2012
Current: Federal	$	5,527		$	(256	)	$	—
State		1,600			147			33
Foreign		228			(7,333	)		(3,165	)

Subtotal Current		7,355			(7,442	)		(3,132	)
Deferred: Federal		(29,620	)		—			—
State		(2,219	)		—			—
Foreign		—			—			—

Subtotal Deferred		(31,838	)		—			—

Income tax (benefit) expense	$	(24,484	)	$	(7,442	)	$	(3,132	)

Components of Income from Continuing Operations Before Income Taxes

The US and foreign components of income (loss) from continuing operations before income taxes for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands):


	Years Ended December 31,
	2014			2013			2012
US	$	(41,256	)	$	(24,833	)	$	(43,821	)
Foreign		4,011			(221	)		(4,182	)

Income (loss) from continuing operations before income taxes	$	(37,245	)	$	(25,054	)	$	(48,003	)

Federal Statutory Income Tax Rate to Income (Loss) Before Income Taxes


	Years Ended December 31,
	2014			2013			2012
Tax provision (benefit) at federal statutory rate	$	(13,036	)	$	(8,769	)	$	(16,801	)
Permanent differences		335			(536	)		7,660
State tax (net of federal benefit)		1,004			95			44
Effect of foreign tax rate change		(1,083	)		(235	)		(2,828	)
Foreign withholding taxes (net of federal)		231			(3,759	)		725
Reverse book loss on notes		—			—			19,767
Reverse AU book loss on notes		—			—			24,034
Uncertain tax positions		—			(3,575	)		—
Increase (decrease) in valuation allowance		(17,299	)		6,642			(41,692	)
Contingent Value Rights		—			(5,216	)		(452	)
Reversing deferred taxes		—			(365	)		3,890
Debt exchange costs		—			7,393			—
Transaction costs		—			(1,338	)		—
UK Sterwardship costs		—			1,455			2,509
199 Manufacturing Deduction		(594	)		—			—
Bargain Purchase Gain		(496	)		—			—
Officer Life Insurance Proceeds		(392	)		—			—
Legal Fees / Acquisitions		3,391			—			—
Foreign E&P		3,395			—			—
Other		60			766			12

Income tax (benefit) expense	$	(24,484	)	$	(7,442	)	$	(3,132	)

Net Deferred Tax Assets and Liabilities

Net deferred tax balances are comprised of the following as of December 31, 2014 and 2013 (in thousands).


	December 31,
	2014			2013
Deferred tax assets	$	115,736		$	138,334
Valuation allowance		(69,020	)		(118,323	)
Deferred tax liabilities		(29,204	)		(20,011	)

Net deferred taxes	$	17,512		$	—

Significant Components of Company's Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows as of December 31, 2014 and 2013 (in thousands):


	December 31,
	2014			2013
Current
Allowance for bad debt	$	351		$	905
Other		1,494			1,675
Valuation allowance		(144	)		(2,580	)

Total Current		1,701			—
Non-current
Basis difference in intangibles		(7,527	)		2,105
Capital loss carryforwards		0			1,726
Net operating loss carryforwards		26,440			96,230
Basis difference in fixed assets		4,763			15,560
Deferred compensation		7,127			—
UK Trading loss carryforward		52,932			—
Other		952			122
Valuation allowance		(68,876	)		(115,743	)

Total Non-current	$	15,811		$	—

Unrecognized Tax Benefits


	Years Ended December 31,
	2014			2013			2012
Balance at January 1,	$	35,196		$	66,161		$	86,206
Foreign currency adjustments		—			—			—
Statute expiration		—			(3,295	)		(1,172	)
Gross increases (decreases) of tax positions in prior period		(35,196	)		(28,178	)		(21,496	)
Audit resolution		—			—			—
Gross increases of tax positions in current period		—			508			2,623

Balance at December 31,	$	—		$	35,196		$	66,161

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Purchase Obligations and Non-Cancellable Operating Leases

Future minimum lease payments under non-cancellable operating leases as of December 31, 2014 are as follows (in thousands):


Year Ending December 31,	Operating Leases
2015	$	4,209
2016		3,914
2017		3,249
2018		2,433
2019		1,927
Thereafter		10,263

Total long-term obligations	$	25,995

Employee Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2014

Postemployment Benefits [Abstract]

Schedule of Change in Projected Benefit Obligation

The following table presents this reconciliation and shows the change in the projected benefit obligation for the Plans for the period from September 22 through December 31, 2014:


(in thousands)
Projected benefit obligation at September 22, 2014	$	206,735
Service cost - benefits earning during the period		14
Interest cost on projected benefit obligation		2,017
Contributions		8
Actuarial loss		12,480
Benefits paid		(2,167	)

Projected benefit obligation at December 31, 2014	$	219,087

Schedule of Change in Value of Assets of Plans

The following table presents the change in the value of the assets of the Plans for the period from September 22 through December 31, 2014 and the plans’ funded status at December 31, 2014:


(in thousands)
Fair value of plan assets at September 22, 2014	$	160,812
Actual return on plan assets		14,873
Benefits paid		(2,167	)
Contributions		6,641
Foreign currency gain (loss)		1,718

Fair value of plan assets at December 31, 2014		181,877

Unfunded status at end of year	$	37,210

Schedule of Amounts Recognized in Consolidated Balance Sheets

Amounts recognized in the consolidated balance sheets at December 31, 2014 are listed below:


(in thousands)
Pension Liability	$	37,210

Net amount recognized	$	37,210

Components of Net Periodic Benefit Cost

The following table presents the components of net periodic benefit cost:


(in thousands)
Service cost—benefits earning during the period	$	14
Interest cost on projected benefit obligation		1,978
Expected return on assets		(1,923	)
Actuarial (gain) loss		(426	)

Net pension benefit	$	(357	)

Weighted Average Rate of Assumptions for Asset Allocation Plans

The overall expected rate of return on assets is then derived by aggregating the expected return for each asset class over the actual asset allocation for the Plans as of December 31, 2014.


	Year Ended December 31, 2014
Discount rate		3.60	%
Rate of compensation increases (Merchant Navy Officers Pension Fund only)		4.50	%
Rate of future RPI inflation		3.00	%
Rate of future CPI inflation		2.00	%
Pension increases in payment		2.85	%
Long-term rate of return on assets		4.43	%

Net Actuarial Loss (Gain) and Prior Service Cost Included in Accumulated Other Comprehensive Income


(in thousands)
Net loss (gain)	$	(1,129	)

Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	(1,129	)


(in thousands)
Actuarial (gain) loss	$	(1,129	)

Total recognized in other comprehensive (income) loss		(1,129	)

Balance at December 31, 2014	$	(1,129	)

Schedule of Expected Benefit Payments under Pension and Postretirement Plans

The following table provides expected benefit payments under our pension and postretirement plans:


(in thousands)
2015	$	5,736
2016		5,885
2017		6,037
2018		6,194
2019		6,355
Thereafter		34,336

	$	64,543

Summary of Plans' Weighted-Average Asset Targets and Actual Allocations as Percentage of Plan Assets


	Target			December 31, 2014
Liability hedging		25.0	%		21.5	%
Equities		24.2	%		24.6	%
Hedge funds		24.7	%		25.5	%
Corporate bonds		13.8	%		14.9	%
Emerging markets		5.6	%		5.0	%
Property		3.7	%		4.0	%
Other		3.0	%		4.5	%

					100.0	%

Summary of GMSL's Investments Plan

Investment Valuation

GMSL’s plan investments related to the Global Marine Systems Pension Plan consist of the following at December 31, 3014:


(in thousands)
Equities	$	45,198
Liability Hedging Assets		39,626
Hedge Funds		40,853
Corporate Bonds		20,238
Property		8,847
Other		14,777

Total market value of assets		169,539
Present value of liabilities		(206,853	)

Net pension liability	$	(37,314	)

GMSL’s plan investments related to the Merchant Navy Officers Pension Fund consist of the following at December 31, 2014:


(in thousands)
Equities	$	699
Hedge Funds		435
Corporate Bonds		715
LDI Strategy		1,255

Total market value of assets		3,104
Present value of liabilities		(3,000	)

Net pension asset (liability)	$	104

Summary of Fair Value of Pension Assets and Liabilities

The following table sets forth by level, within the fair value hierarchy, the pension assets and liabilities at fair value as of December 31, 2014 for the Global Marine Systems Pension Plan:


(in thousands)	Level 1		Level 2		Total
Equities	$	—	$	45,198	$	45,198
Liability Hedging Assets		—		39,626		39,626
Hedge Funds		—		40,853		40,853
Corporate Bonds		—		20,238		20,238
Property		—		8,847		8,847
Other		14,777		—		14,777

Total Plan Net Assets	$	14,777	$	154,762	$	169,539

The following table sets forth by level, within the fair value hierarchy, the pension assets and liabilities at fair value as of December 31, 2014 for the Merchant Navy Officers Pension Fund:


(in thousands)	Level 3		Total
Equities	$	699	$	699
Hedge Funds		435		435
Corporate Bonds		715		715
LDI Strategy		1,255		1,255

Total Plan Net Assets	$	3,104	$	3,104

Summary of Changes in Fair Value of Level 3 Pension Assets

The table below set forth a summary of changes in the fair value of the Level 3 pension assets for the period ended December 31, 2014 for the Merchant Navy Officers Pension Fund:


(in thousands)
Balance at December 31, 2014	$	2,908
Actual return on plan assets		165
Contributions		59
Benefits paid		(28	)

Balance at December 31, 2014	$	3,104

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Fair Value of Each Option Grant Estimated

The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions shown as a weighted average for the year:


	Years Ended December 31,
	2014	2013	2012
Expected option life	5.5 - 6 years	4 - 5.75 years	4 - 5.75 years
Risk-free interest rate	1.61 - 2.73%	1.17 - 1.73%	0.57 - 0.89%
Expected volatility	36.74 - 40.50%	35.55 - 37.23%	35.83 - 36.64%
Dividend yield	0%	0%	0%

Summary of Company's Restricted Stock Activity

A summary of HC2’s restricted stock activity during the years ended December 31, 2014 and 2013 is as follows:


	Shares			Weighted Average Grant Date Fair Value
Unvested—January 1, 2013		286,208		$	12.91
Granted		20,000		$	11.89
Vested		(283,626	)	$	12.79
Forfeitures		(82	)	$	15.60

Unvested—December 31, 2013		22,500		$	13.59
Granted		502,172		$	4.21
Vested		(185,970	)	$	5.25
Forfeitures		—		$	—

Unvested—December 31, 2014		338,702		$	4.26

Summary of Company's Stock Option Activity

A summary of HC2’s stock option activity during the years ended December 31, 2014 and 2013 is as follows:


	Shares			Weighted Average Exercise Price
Outstanding—January 1, 2013		212,244		$	9.24
Granted		690,948		$	3.64
Exercised		(75,564	)	$	5.93
Forfeitures		(237,769	)	$	9.07

Outstanding—December 31, 2013		589,859		$	3.17
Granted		3,452,767		$	4.30
Exercised		(230,300	)	$	2.43
Forfeitures		(239,185	)	$	4.40

Outstanding—December 31, 2014		3,573,141		$	4.27

Eligible for exercise		1,260,643		$	4.22

Intrinsic Values and Remaining Contractual Terms of Company's Stock Options

The following table summarizes the intrinsic values and remaining contractual terms of HC2’s stock options (in thousands):


	Intrinsic Value		Weighted Average Remaining Life in Years
Options outstanding—December 31, 2014	$	14,828		9.5
Options exercisable—December 31, 2014	$	5,292		9.3

Equity (Tables)

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Summary of Cash, PIK and Special Cash Dividends

Declaration Date

June 30, 2014

September 30, 2014

December 31, 2014

Holders of Record Date

June 30, 2014

September 30, 2014

December 31, 2014

Payment/Accrual Date

July 15, 2014

October 15, 2014

January 15, 2015

Total Dividend

307

897

777


	Cash Dividend Per Share
	$8.50
Declaration Date		August 7, 2013
Holders of Record Date		August 20, 2013
Payment Date		August 27, 2013
Total Dividend	$	119,788

Related Parties (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Balance Outstanding of Related Parties

Summary of transactions during the year and balances outstanding at year-end is as follows (in thousands):


Year Ended December 31, 2014
Revenue	$	6,625
Operating costs		900
Capital lease interest		436
Dividends received		3,714

December 31, 2014
Accounts receivable	$	2,585
Obligations under capital leases		42,296
Trade creditors		436

Operating Segment and Related Information (Tables)

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Summary of Company's Operating Segments

Summary information with respect to the Company’s geographic and operating segments is as follows (in thousands):


	Years Ended December 31,
	2014			2013			2012
Net Revenue by Geographic Region
United States	$	442,472		$	108,563		$	100,753
United Kingdom		93,417			122,123			202,206
Other		7,313			—			—

Total	$	543,202		$	230,686		$	302,959

Net Revenue by Segment
Telecommunications	$	161,953		$	230,686		$	302,959
Manufacturing		348,318			—			—
Utilities		1,839			—			—
Marine Services		31,092			—			—

Total	$	543,202		$	230,686		$	302,959

Income (Loss) from Operations
Telecommunications		(1,840	)		(19,705	)		(17,187	)
Life Sciences		(4,762	)		—			—
Manufacturing		26,359			—			—
Utilities		(491	)		—			—
Marine Services		4,368			—			—
Other		(8,002	)		—			—
Corporate		(30,058	)		(19,431	)		(34,709	)

Total	$	(14,426	)	$	(39,136	)	$	(51,896	)

Capital Expenditures
Telecommunications	$	42		$	1,390		$	1,452
Manufacturing		5,039			—			—
Utilities		803			—			—
Marine Services		(863	)		—			—
Other (1)		798			11,187			29,999
Corporate		—			—			296

Total	$	5,819		$	12,577		$	31,747

1)	Other also includes capital expenditures related to discontinued operations.

Segment Reporting for Long-term investments, Property and Equipment - Net and Assets


	December 31,
	2014		2013		2012
Long-term investments
Life Sciences	$	1,916	$	—	$	—
Marine Services		26,401		—		—
Corporate		20,357		—		—

Total	$	48,674	$	—	$	—


	December 31,
	2014		2013		2012
Property, Plant and Equipment—Net
United States	$	87,091	$	2,303	$	2,335
United Kingdom		147,323		659		—
Other (1)		5,437		—		62,980

Total	$	239,851	$	2,962	$	65,315


	December 31,
	2014		2013		2012
Total Assets
Telecommunications	$	24,501	$	33,397	$	44,710
Life Sciences		11,007		—		—
Manufacturing		281,067		—		—
Utilities		25,391		—		—
Marine Services		283,948		—		—
Other (1)		6,369		7,423		223,899
Corporate		91,765		46,860		32,581

Total	$	724,048	$	87,680	$	301,190

(1)	Other also includes property, plant and equipment—net and total assets related to discontinued operations.

Quarterly Results of Operations (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Results of Operations

The following is a tabulation of the unaudited quarterly results of operations for the years ended December 31, 2014 and 2013.


	Quarters Ended
	(in thousands, except per share amounts)
	March 31, 2014		June 30, 2014		September 30, 2014		December 31, 2014
Services revenue	$	43,354	$	42,178	$	41,321	$	66,191
Sales revenue		—		54,408		138,112		157,638

Net revenue		43,354		96,586		179,433		223,829
Cost of revenue—services		41,107		39,530		39,464		54,855
Cost of revenue—sales		—		43,330		119,175		134,025

Total cost of revenue		41,107		82,860		158,639		188,880
Income (loss) from operations		(4,087)		(1,097)		75		(9,317)
								—
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—common holders		(4,180)		(3,788)		(17,440)		7,982
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—preferred holders		—		—		—		3,416
Income (loss) from discontinued operations		17		27		(106)		37
Gain (loss) from sale of discontinued operations		(784)		—		663		—

Net income (loss)—basic	$	(4,947)	$	(3,761)	$	(16,883)	$	11,435

Net income (loss)—diluted	$	(4,947)	$	(3,761)	$	(16,883)	$	11,435

Weighted average common shares outstanding-basic		14,631		16,905		23,372		23,813

Weighted average common shares outstanding-diluted		14,631		16,905		23,372		28,962

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—common holders	$	(0.29)	$	(0.22)	$	(0.75)	$	0.34
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—preferred holders		—		—		—		0.34
Income (loss) from discontinued operations		—		—		—		—
Gain (loss) from sale of discontinued operations		(0.05)		—		0.03		—

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.34)	$	(0.22)	$	(0.72)	$	0.68

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—common holders	$	(0.29)	$	(0.22)	$	(0.75)	$	0.28
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.—preferred holders		—		—		—		0.34
Income (loss) from discontinued operations		—		—		—		—
Gain (loss) from sale of discontinued operations		(0.05)		—		0.03		—

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.34)	$	(0.22)	$	(0.72)	$	0.62


	Quarters Ended
	(in thousands, except per share amounts)
	March 31, 2013		June 30, 2013		September 30, 2013		December 31, 2013 (1)
Net services revenue	$	58,789	$	58,621	$	61,077	$	52,199
Cost of revenue—services		55,516		55,436		58,752		50,611
Income (loss) from operations		(5,502)		(11,491)		(4,113)		(18,030)
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.		(5,592)		2,921		(867)		(14,074)
Income (loss) from discontinued operations		2,379		(604)		(21,493)		97
Gain (loss) from sale of discontinued operations		—		135,045		15,650		(1,856)

Net income (loss)—basic	$	(3,213)	$	137,362	$	(6,710)	$	(15,833)

Net income (loss)—diluted	$	(3,213)	$	137,362	$	(6,710)	$	(15,833)

Weighted average common shares outstanding-basic		13,909		13,972		14,077		14,222

Weighted average common shares outstanding-diluted		13,909		14,436		14,077		14,222

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$	(0.40)	$	0.21	$	(0.06)	$	(0.99)
Income (loss) from discontinued operations		0.17		(0.04)		(1.53)		0.01
Gain (loss) from sale of discontinued operations		—		9.67		1.11		(0.13)

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.23)	$	9.84	$	(0.48)	$	(1.11)

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$	(0.40)	$	0.20	$	(0.06)	$	(0.99)
Income (loss) from discontinued operations		0.17		(0.04)		(1.53)		0.01
Gain (loss) from sale of discontinued operations		—		9.35		1.11		(0.13)

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.23)	$	9.51	$	(0.48)	$	(1.11)

(1)

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Summarized Operating Results of Discontinued Operations and Assets and Liabilities Classified as Held for Sale

Summarized operating results of the discontinued operations are as follows (in thousands):


	Years Ended December 31,
	2014			2013			2012
Net revenue	$	7,530		$	132,515		$	375,264
Operating expenses		7,610			119,392			343,263

Income from operations		(80	)		13,123			32,001
Interest expense		(17	)		(11,362	)		(24,621	)
Gain (loss) on early extinguishment or restructuring of debt		—			(21,124	)		(21,682	)
Interest income and other income (expense)		(60	)		(51	)		283
Foreign currency transaction loss		—			(378	)		(2,550	)

Loss before income tax		(157	)		(19,792	)		(16,569	)
Income tax benefit (expense)		132			171			(4,956	)

Income from discontinued operations	$	(25	)	$	(19,621	)	$	(21,525	)

Summarized assets and liabilities of the remaining portion of North America Telecom, PTI, classified as held for sale as of December 31, 2013 are as follows (in thousands):


	North America Telecom (1)
	December 31, 2013
Accounts receivable	$	670
Prepaid expenses and other current assets		839
Long-lived assets and other non-current assets		4,820

Assets held for sale	$	6,329

Accounts payable	$	869
Accrued interconnection costs		420
Accrued expenses and other liabilities		3,534

Liabilities held for sale	$	4,823

(1)	Included in the table above is the remaining goodwill of the US reporting unit of $3.7 million and customer relationships of $0.4 million, applicable to PTI.

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Basic and Diluted Income (Loss) Per Common Share (Tables)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Basic Income (Loss) Per Common Share to Diluted Income (Loss) Per Common Share

A calculation of basic income (loss) per common share to diluted income (loss) per common share is set forth below (in thousands, except per share amounts):


	Years Ended December 31,
	2014		2013		2012
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.		(14,010)		(17,612)		(44,853)
Income (loss) from discontinued operations		(25)		(19,621)		(21,525)
Gain (loss) from sale of discontinued operations		(121)		148,839		94,265

Net income (loss)—basic	$	(14,156)	$	111,606	$	27,887

Net income (loss)—diluted	$	(14,156)	$	111,606	$	27,887

Weighted average common shares outstanding-basic		19,729		14,047		13,844

Weighted average common shares outstanding-diluted		19,729		14,047		13,844

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$	(0.71)	$	(1.25)	$	(3.24)
Income (loss) from discontinued operations		—		(1.40)		(1.55)
Gain (loss) from sale of discontinued operations		(0.01)		10.60		6.81

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.72)	$	7.95	$	2.02

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$	(0.71)	$	(1.25)	$	(3.24)
Income (loss) from discontinued operations		—		(1.40)		(1.55)
Gain (loss) from sale of discontinued operations		(0.01)		10.60		6.81

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.72)	$	7.95	$	2.02

Organization and Business - Additional Information (Detail) $ in Thousands					12 Months Ended
	Sep. 22, 2014 USD ($)	Sep. 08, 2014 USD ($)	Aug. 01, 2014 USD ($) shares	May 29, 2014 USD ($) shares	Dec. 31, 2014 USD ($) Segment shares	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Jun. 30, 2014
Business And Organization [Line Items]
Proceeds from issuance of preferred stock					$ 40,050
Proceeds from issuance of common stock				$ 6,000	$ 6,000	$ 1,158	$ 124
Proceeds from issuance of senior secured credit facility				$ 80,000
Debt instrument term				18 months
Date of acquisition					May 29, 2014
Number of reportable operating segments \| Segment					6
Senior Secured Note [Member]
Business And Organization [Line Items]
Debt instrument interest rate stated percentage	11.00%
ANG [Member]
Business And Organization [Line Items]
Percentage of ownership interest acquired			51.00%
Debt instrument term					5 years
Date of acquisition					Aug. 01, 2014
Minority interest percentage by non controlling interest			49.00%
Business acquisition cost			$ 17,700
Schuff [Member]
Business And Organization [Line Items]
Number of shares acquired \| shares				2,500,000	809,043
Additional number of shares acquired \| shares				198,411
Percentage of ownership interest acquired				65.00%	91.00%			70.00%
Aggregate consideration for shares acquired				$ 85,000
Date of acquisition					May 29, 2014
Minority interest percentage by non controlling interest				40.00%
Schuff [Member] \| Open-market Transaction [Member]
Business And Organization [Line Items]
Percentage of ownership interest acquired					91.00%
Schuff [Member] \| Short-form Merger [Member]
Business And Organization [Line Items]
Percentage of ownership interest acquired					100.00%
Bridgehouse Marine Limited [Member]
Business And Organization [Line Items]
Aggregate consideration for shares acquired	$ 260,000
Global Marine Systems Limited [Member]
Business And Organization [Line Items]
Percentage of ownership interest acquired	97.00%
Proceeds from issuance of senior secured credit facility	$ 214,000
Debt instrument term	12 months				4 years 6 months
Date of acquisition					Sep. 22, 2014
Ownership percentage by parent					97.00%
Minority interest percentage by non controlling interest	3.00%				3.00%
Business acquisition cost	$ 260,000
Global Marine Systems Limited [Member] \| Delayed Draw Term Loan [Member]
Business And Organization [Line Items]
Proceeds from issuance of senior secured credit facility	36,000
Novatel Wireless, Inc. [Member]
Business And Organization [Line Items]
Proceeds from issuance of senior secured credit facility		$ 17,000
Series A Convertible Preferred Stock [Member]
Business And Organization [Line Items]
Proceeds from issuance of preferred stock				$ 30,000
Series A Convertible Preferred Stock [Member] \| ANG [Member]
Business And Organization [Line Items]
Number of shares acquired \| shares			15,500
Business acquisition cost			$ 15,500
Series A-1 Convertible Preferred Stock [Member]
Business And Organization [Line Items]
Proceeds from issuance of preferred stock	$ 11,000
Common Stock [Member]
Business And Organization [Line Items]
Number of shares acquired \| shares				2,500,000
Common Stock [Member] \| Schuff [Member]
Business And Organization [Line Items]
Number of shares acquired \| shares				2,500,000
Schuff Hopsa Engineering, Inc. [Member]
Business And Organization [Line Items]
Ownership percentage by parent				49.00%
Schuff. Empresas Hopsa, S.A. [Member]
Business And Organization [Line Items]
Minority interest percentage by non controlling interest				51.00%
Genovel [Member]
Business And Organization [Line Items]
Ownership percentage by parent					80.00%
GemDerm Aesthetics, Inc [Member]
Business And Organization [Line Items]
Ownership percentage by parent					61.00%
DMi, Inc. [Member]
Business And Organization [Line Items]
Ownership percentage by parent					100.00%

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2014 USD ($) ServiceProvider
Significant Accounting Policies [Line Items]
Ownership interest description		Investments in non-wholly-owned companies are generally consolidated if the Company's interest exceeds 50% or if the Company has the power to direct the economic activities of the entity and the obligation to absorb losses, or accounted for under the equity method of accounting when the Company exercises significant influence over the venture.
Unapproved change orders on open projects \| $		$ 53.9
Maximum [Member]
Significant Accounting Policies [Line Items]
Ownership interest rate		50.00%
Global Marine Systems Limited [Member]
Significant Accounting Policies [Line Items]
Percentage of ownership interest owned		97.00%
Number of telecommunications providers through contracts under maintenance \| ServiceProvider		60
Global Marine Systems Limited [Member] \| Minimum [Member]
Significant Accounting Policies [Line Items]
Maintenance contract term		5 years
Fixed price contracts installation term		1 month
Global Marine Systems Limited [Member] \| Maximum [Member]
Significant Accounting Policies [Line Items]
Maintenance contract term		7 years
Fixed price contracts installation term		5 months
Schuff [Member]
Significant Accounting Policies [Line Items]
Percentage of ownership interest owned		91.00%
ANG [Member]
Significant Accounting Policies [Line Items]
Percentage of ownership interest owned		51.00%
DMi, Inc. [Member]
Significant Accounting Policies [Line Items]
Percentage of ownership interest owned		100.00%
Genovel [Member]
Significant Accounting Policies [Line Items]
Percentage of ownership interest owned		80.00%
GemDerm Aesthetics, Inc [Member]
Significant Accounting Policies [Line Items]
Percentage of ownership interest owned		61.00%
Buildings and Improvements [Member] \| Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of property, plant and equipment	15 years
Buildings and Improvements [Member] \| Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of property, plant and equipment	40 years
Cable-Ships and Submersibles [Member] \| Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of property, plant and equipment	35 years
Machinery and Equipment [Member] \| Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of property, plant and equipment	3 years
Machinery and Equipment [Member] \| Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of property, plant and equipment	15 years
Plant and Motor Vehicles [Member] \| Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of property, plant and equipment	3 years
Plant and Motor Vehicles [Member] \| Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of property, plant and equipment	20 years

Accounts Receivable and Contracts in Progress - Schedule of Accounts Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Contract receivables:
Contracts in progress	$ 112,929
Unbilled retentions	32,850
Trade receivables	8,344	$ 21,456
Other receivables	195
Allowance for doubtful accounts	(2,760)	(2,476)
Total accounts receivable	$ 151,558	$ 18,980

Accounts Receivable and Contracts in Progress - Costs and Recognized Earnings in Excess of Billings and Billings in Excess of Costs and Recognized Earnings on Uncompleted Contracts (Detail) $ in Thousands	Dec. 31, 2014 USD ($)
Receivables [Abstract]
Costs incurred on contracts in progress	$ 531,129
Estimated earnings	73,540
Costs incurred on contracts in progress and estimated earnings, gross	604,669
Less progress billings	618,530
Costs incurred on contracts in progress and estimated earnings, net	(13,861)
The above is included in the accompanying condensed consolidated balance sheet under the following captions
Costs and recognized earnings in excess of billings on uncompleted contracts	28,098
Billings in excess of costs and recognized earnings on uncompleted contracts	(41,959)
Costs incurred on contracts in progress and estimated earnings, net	$ (13,861)

Inventories - Summary of Inventories (Detail) $ in Thousands	Dec. 31, 2014 USD ($)
Inventory Disclosure [Abstract]
Raw materials	$ 12,956
Work in process	1,779
Finished goods	240
Inventories, net	$ 14,975

Business Combinations - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended				12 Months Ended
	Sep. 22, 2014	Aug. 01, 2014	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	May 29, 2014
Business Acquisition [Line Items]
Measurement period of assets and liabilities							1 year
Acquisition date							May 29, 2014
Acquisition resulted in goodwill			$ 27,990				$ 27,990	$ 3,378	$ 60,744
Revenue			$ 223,829	$ 179,433	$ 96,586	$ 43,354	543,202	230,686	302,959
Net income (loss)							$ (12,107)	$ 111,606	$ 27,887
Common Stock [Member]
Business Acquisition [Line Items]
Number of shares acquired										2,500,000
Schuff [Member]
Business Acquisition [Line Items]
Acquisition date							May 29, 2014
Number of shares acquired			809,043				809,043			2,500,000
Additional number of shares acquired										198,411
Percentage of ownership interest acquired			91.00%		70.00%		91.00%			65.00%
Business acquisition purchase price valued per share										$ 31.50
Number of shares acquired, value										$ 78,750
Minority interest percentage by non controlling interest										40.00%
Acquisition resulted in goodwill			$ 24,612				$ 24,612			$ 24,612
Company ownership percentage			91.00%				91.00%
Fair value of the non-controlling interest			$ 3,400				$ 3,400			4,365
Net enterprise value										$ 132,397
Transaction cost incurred in acquisition			$ 300				300
Revenue							348,300
Net income (loss)							$ 13,700
Schuff [Member] \| Short-form Merger [Member]
Business Acquisition [Line Items]
Percentage of ownership interest acquired			100.00%				100.00%
Schuff [Member] \| Common Stock [Member]
Business Acquisition [Line Items]
Number of shares acquired										2,500,000
ANG [Member]
Business Acquisition [Line Items]
Acquisition date							Aug. 01, 2014
Percentage of ownership interest acquired		51.00%
Minority interest percentage by non controlling interest		49.00%
Acquisition resulted in goodwill		$ 4,674
Fair value of the non-controlling interest		2,200
Business acquisition cost		$ 17,700
Non controlling interests represent to number of common stock		1,000,000
Purchase price		$ 4,700
Net enterprise value		$ 22,363
Revenue							$ 1,800
Net income (loss)							$ 400
ANG [Member] \| Common Stock [Member]
Business Acquisition [Line Items]
Preferred stock converted into number of common stock		1,033,333
ANG [Member] \| Series A Convertible Preferred Stock [Member]
Business Acquisition [Line Items]
Number of shares acquired		15,500
Business acquisition cost		$ 15,500
Global Marine Systems Limited [Member]
Business Acquisition [Line Items]
Acquisition date							Sep. 22, 2014
Percentage of ownership interest acquired	97.00%
Minority interest percentage by non controlling interest	3.00%		3.00%				3.00%
Business acquisition cost	$ 260,000
Net enterprise value	$ 130,388
Transaction cost incurred in acquisition			$ 8,000				$ 8,000
Revenue							31,100
Net income (loss)							$ 8,400

Business Combinations - Schedule of Preliminary Purchase Price Allocation (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Sep. 22, 2014	Aug. 01, 2014	May 29, 2014	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Excess of fair value of net assets over purchase price	$ 27,990				$ 3,378	$ 60,744
Schuff [Member]
Business Acquisition [Line Items]
Cash and cash equivalents				$ (627)
Investments				1,714
Accounts receivable				130,622
Costs and recognized earnings in excess of billings on uncompleted contracts				27,126
Prepaid expenses and other current assets				3,079
Inventories				14,487
Assets held for sale				0
Property and equipment, net				85,662
Excess of fair value of net assets over purchase price	24,612			24,612
Other assets				2,947
Total assets acquired				294,100
Accounts payable				37,621
Accrued payroll and employee benefits				11,668
Accrued expenses and other current liabilities				12,532
Billings in excess of costs and recognized earnings on uncompleted contracts				65,985
Accrued income taxes				1,202
Accrued interest				76
Current portion of long-term debt				15,460
Liabilities held for sale				0
Long-term debt				4,375
Deferred tax liability				7,815
Other liabilities				604
Noncontrolling interest	$ 3,400			4,365
Total liabilities assumed				161,703
Enterprise value				132,397
Less fair value of noncontrolling interest				53,647
Purchase price				78,750
Schuff [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangibles				$ 4,478
ANG [Member]
Business Acquisition [Line Items]
Cash and cash equivalents			$ 15,704
Accounts receivable			306
Prepaid expenses and other current assets			31
Inventories			27
Property and equipment, net			1,921
Excess of fair value of net assets over purchase price			4,674
Other assets			2
Total assets acquired			26,991
Accounts payable			49
Accrued payroll and employee benefits			5
Accrued expenses and other current liabilities			26
Billings in excess of costs and recognized earnings on uncompleted contracts			114
Current portion of long-term debt			34
Long-term debt			870
Deferred tax liability			3,530
Noncontrolling interest			2,200
Total liabilities assumed			4,628
Enterprise value			22,363
Purchase price			17,689
ANG [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangibles			6,300
ANG [Member] \| Customer Contracts [Member]
Business Acquisition [Line Items]
Intangibles			$ 2,700
Global Marine Systems Limited [Member]
Business Acquisition [Line Items]
Cash and cash equivalents		$ 62,555
Investments		24,266
Accounts receivable		26,183
Prepaid expenses and other current assets		9,886
Inventories		7,395
Restricted cash		4,682
Property and equipment, net		156,976
Other assets		7,482
Total assets acquired		309,982
Accounts payable		8,965
Accrued expenses and other current liabilities		34,767
Accrued income taxes		1,251
Current portion of long-term debt		8,140
Long-term debt		78,356
Pension liability		45,923
Deferred tax liability		1,013
Other liabilities		1,179
Total liabilities assumed		179,594
Enterprise value		130,388
Less fair value of noncontrolling interest		3,803
Purchase price		126,585
Global Marine Systems Limited [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangibles		1,137
Global Marine Systems Limited [Member] \| Customer Contracts [Member]
Business Acquisition [Line Items]
Intangibles		7,796
Global Marine Systems Limited [Member] \| Developed Technology [Member]
Business Acquisition [Line Items]
Intangibles		$ 1,624

Business Combinations - Schedule of Acquired Amortizable Intangible Assets and Related Estimated Useful Lives (Detail) - USD ($) $ in Thousands				12 Months Ended
	Sep. 22, 2014	Aug. 01, 2014	May 29, 2014	Dec. 31, 2014
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Value	$ 10,557			$ 32,504
Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Value				11,915
Developed Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Value				1,624
Schuff [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Value			$ 4,478	$ 4,478
Schuff [Member] \| Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Useful Lives				15 years
Preliminary Estimated Value			$ 4,478	$ 4,478
ANG [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Value		$ 9,000		$ 11,332
ANG [Member] \| Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Useful Lives				10 years
Preliminary Estimated Value		6,300		$ 6,300
ANG [Member] \| Customer Contracts [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Useful Lives				10 years
Preliminary Estimated Value		$ 2,700
Global Marine Systems Limited [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Value				$ 10,557
Global Marine Systems Limited [Member] \| Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Useful Lives				3 years
Preliminary Estimated Value	1,137			$ 1,137
Global Marine Systems Limited [Member] \| Customer Contracts [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Useful Lives				15 years
Preliminary Estimated Value	7,796
Global Marine Systems Limited [Member] \| Developed Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Estimated Useful Lives				4 years
Preliminary Estimated Value	$ 1,624			$ 1,624

Business Combinations - Schedule of Unaudited Consolidated Pro Forma Results of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended					12 Months Ended
	Sep. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Business Combinations [Abstract]
Net revenue						$ 854,152	$ 801,417
Net income (loss) from continuing operations						15,860	12,707
Net income (loss) from discontinued operations						(2,984)	(32,722)
Gain (loss) from sale of discontinued operations	$ 663	$ (784)	$ (1,856)	$ 15,650	$ 135,045	(121)	148,839	$ 94,265
Net income (loss) attributable to HC2 Holdings, Inc.						$ 12,755	$ 128,824

Investments - Additional Information (Detail) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Oct. 31, 2014 shares	Dec. 31, 2014 USD ($) Investment $ / shares shares	Dec. 31, 2014 USD ($) Investment $ / shares shares
Types Of Investments \| Investment		2	2
Equity method investments		$ 48,700	$ 48,700
Income (loss) from equity investees			$ 3,359
Joint Ventures by GMSL [Member]
Equity method investments, ownership percentage		97.00%	97.00%
Convertible Debt of mParticle [Member]
Long-term investments in debt securities		$ 300	$ 300
Novatel Wireless, Inc. [Member]
Equity method investments, ownership percentage		25.00%	25.00%
Equity method investments		$ 13,400	$ 13,400
Equity method investments, initial investment amount		14,200	$ 14,200
Term of warrant			5 years
Equity method accounting, basis difference		9,100	$ 9,100
Novatel Wireless, Inc. [Member] \| Trade Names [Member]
Equity method accounting, basis difference		1,200	$ 1,200
Amortization period			15 years
Novatel Wireless, Inc. [Member] \| Technology and Customer Intangible [Member]
Equity method accounting, basis difference		1,800	$ 1,800
Amortization period			7 years
Novatel Wireless, Inc. [Member] \| Goodwill [Member]
Equity method accounting, basis difference		$ 6,100	$ 6,100
Novatel Wireless, Inc. [Member] \| Series C Convertible Preferred Stock [Member]
Equity method investments, shares \| shares			87,196
Equity method investments, stock price per share \| $ / shares		$ 17.50	$ 17.50
Equity method investments, number of convertible preferred stock shares for conversion \| shares	87,196
Novatel Wireless, Inc. [Member] \| Common Stock [Member]
Equity method investments, shares \| shares			7,363,334
Equity method investments, stock price per share \| $ / shares		$ 1.75	$ 1.75
Equity method investments, warrants issued or additional share issuance \| shares			4,117,647
Equity method investments, stock exercise price per share \| $ / shares			$ 2.26
Number of shares issued upon conversion \| shares	871,960
Global Cable Technology Ltd. [Member] \| Joint Ventures by GMSL [Member]
Equity method investments, ownership percentage		63.00%	63.00%
Equity method investments		$ 100	$ 100
Sb Submarine Systems Co., Ltd. [Member] \| Joint Ventures by GMSL [Member]
Equity method investments, ownership percentage		48.00%	48.00%
Equity method investments		$ 12,900	$ 12,900
International Cableship Pte., Ltd. [Member] \| Joint Ventures by GMSL [Member]
Equity method investments, ownership percentage		29.00%	29.00%
Equity method investments		$ 2,100	$ 2,100
Sembawang Cable Depot Ptd., Ltd. [Member] \| Joint Ventures by GMSL [Member]
Equity method investments, ownership percentage		39.00%	39.00%
Equity method investments		$ 800	$ 800
Huawei Marine Systems Co., Ltd. [Member] \| Joint Ventures by GMSL [Member]
Equity method investments, ownership percentage		48.00%	48.00%
Equity method investments		$ 10,100	$ 10,100
Visser Smit Global Marine Partnership [Member] \| Joint Ventures by GMSL [Member]
Equity method investments, ownership percentage		48.00%	48.00%
Equity method investments		$ 400	$ 400
Kaneland, LLC [Member]
Equity method investments, ownership percentage		35.00%	35.00%
Equity method investments		$ 1,200	$ 1,200
Equity method investments, initial investment amount		1,200	1,200
Kaneland, LLC [Member] \| Developed Technology [Member]
Equity method accounting, basis difference		$ 700	$ 700
Amortization period			3 years
NerVve Technologies, Inc. [Member]
Equity method investments, ownership percentage	36.00%	40.00%	40.00%
Equity method investments		$ 5,500	$ 5,500
Equity method investments, initial investment amount		5,000	5,000
Equity method investments, additional shares purchased value		600	600
NerVve Technologies, Inc. [Member] \| Developed Technology [Member]
Equity method accounting, basis difference		$ 3,100	$ 3,100
Amortization period			3 years
NerVve Technologies, Inc. [Member] \| Series A-1 Convertible Preferred Stock [Member]
Equity method investments, shares \| shares			791,071
Equity method investments, additional shares purchased \| shares		94,215
Benevir Biopharm, Inc. [Member]
Equity method investments, ownership percentage		49.00%	49.00%
Equity method investments		$ 1,900	$ 1,900
Equity method investments, initial investment amount		1,950	1,950
Benevir Biopharm, Inc. [Member] \| Developed Technology [Member]
Equity method accounting, basis difference		$ 1,200	$ 1,200
Amortization period			15 years
Benevir Biopharm, Inc. [Member] \| Series A-1 Convertible Preferred Stock [Member]
Equity method investments, shares \| shares			2,000

Investments - Summary of Equity Method Investments Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2014 USD ($)
Income Statement Data
Net Revenue	$ 151,594
Gross Profit	35,783
Income from continuing operations	5,142
Net income	5,142
Balance Sheet Summary
Current assets	269,864
Noncurrent assets	149,995
Current liabilities	179,552
Noncurrent liabilities	$ 18,063

Property and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 244,374	$ 6,069
Less accumulated depreciation and amortization	4,523	3,107
Property, plant and equipment, net	239,851	2,962	$ 65,315
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	17,795
Building and Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	29,520	386
Plant And Transportation Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	6,410
Cable-Ships and Submersibles [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	143,270
Equipment, Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	35,229	$ 5,683
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 12,150

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 8.1	$ 12.0	$ 3.2
Cable-Ships and Submersibles [Member]
Property, Plant and Equipment [Line Items]
Net book value of equipment under capital leases	109.5
Accumulated depreciation	$ 1.4

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($)		12 Months Ended
	Oct. 01, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jul. 31, 2013	Jun. 30, 2013
Finite-Lived Intangible Assets [Line Items]
Weighted average cost of capital	13.00%	11.10%
Goodwill		$ 27,990,000	$ 3,378,000	$ 60,744,000
Goodwill attributable to reporting unit			3,700,000
Amortization expense for amortizable intangible assets		901,000	$ 0	200,000
Amortization expense for amortizable intangible assets for the year ending December 31, 2015		3,400,000
Amortization expense for amortizable intangible assets for the year ending December 31, 2016		3,400,000
Amortization expense for amortizable intangible assets for the year ending December 31, 2017		3,400,000
Amortization expense for amortizable intangible assets for the year ending December 31, 2018		3,000,000
Amortization expense for amortizable intangible assets for the year ending December 31, 2019		2,700,000
Amortization expense for amortizable intangible assets thereafter 2019		15,200,000
Canada [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill				34,162,000
United States [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill				$ 26,582,000
BLACKIRON Data [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill						$ 20,200,000
North America Telecom [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill					$ 22,600,000
Sale of Trademark		27,000,000
Deferred tax liabilities		$ 10,500,000
North America Telecom [Member] \| Canada [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill attributable to reporting unit					13,200,000
Primus Telecommunications Inc [Member] \| United States [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill attributable to reporting unit					$ 4,000,000

Goodwill and Other Intangible Assets - Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 3,378	$ 60,744
Effect of change in foreign currency exchange rates		(776)
Disposition of business		(55,954)
Acquisition of business	24,612
Allocation (to) from disposal group		(636)
Goodwill, Ending Balance	27,990	3,378
United States [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance		26,582
Disposition of business		(22,568)
Allocation (to) from disposal group		(4,014)
Canada [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance		34,162
Effect of change in foreign currency exchange rates		(776)
Disposition of business		(33,386)
ICS [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	3,378
Allocation (to) from disposal group		3,378
Goodwill, Ending Balance	3,378	$ 3,378
Schuff [Member]
Goodwill [Line Items]
Acquisition of business	24,612
Goodwill, Ending Balance	$ 24,612

Long-Term Obligations - Schedule of Long-term Debt (Detail) $ in Thousands	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Long-term debt	$ 345,716
Obligations under capital leases	65,176
Other	30
Subtotal	345,716
Original issue discount on Senior Secured Notes	(2,345)
Subtotal	343,371
Less: Current portion of long-term obligations	(10,444)
Total long-term obligations	332,927
Subtotal	343,371
Senior Secured Notes Collaterized by Assets [Member]
Debt Instrument [Line Items]
Long-term debt	250,000
Note Payable Collaterized by Assets [Member] \| Global Marine Systems Limited [Member]
Debt Instrument [Line Items]
Long-term debt	16,732
Note Payable Collaterized by Assets [Member] \| ANG [Member]
Debt Instrument [Line Items]
Long-term debt	810
Note Payable Collaterized by Real Estate [Member] \| Schuff [Member]
Debt Instrument [Line Items]
Long-term debt	4,635
Note Payable Collateralized by Equipment [Member] \| Schuff [Member]
Debt Instrument [Line Items]
Long-term debt	$ 8,333

Long-Term Obligations - Schedule of Long-term Debt (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2014 USD ($)
Senior Secured Notes Collaterized by Assets [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate terms	Interest payable semi-yearly based on a fixed annual interest rate of 11% with principal
Debt instrument, variable rate	11.00%
Debt instrument, maturity year	2019
Note Payable Collaterized by Assets [Member] \| Global Marine Systems Limited [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate terms	Interest payable monthly at LIBOR plus 3.65% and principal payable quarterly
Debt instrument, variable rate	3.65%
Debt instrument, maturity year	2018
Note Payable Collaterized by Assets [Member] \| ANG [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate terms	Interest payable monthly at 5.5% and principal payable monthly
Debt instrument, variable rate	5.50%
Debt instrument, maturity year	2018
Note Payable Collaterized by Real Estate [Member] \| Schuff [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate terms	Interest payable monthly at LIBOR plus 4% and principal payable monthly
Debt instrument, variable rate	4.00%
Debt instrument, maturity year	2019
Debt instrument, final balloon payment	$ 1.9
Note Payable Collateralized by Equipment [Member] \| Schuff [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate terms	Interest payable monthly at LIBOR plus 4% and principal payable monthly
Debt instrument, variable rate	4.00%
Debt instrument, maturity year	2019
Debt instrument, final balloon payment	$ 1.9

Long-Term Obligations - Schedule of Aggregate Debt Maturities (Detail) $ in Thousands	Dec. 31, 2014 USD ($)
Debt Disclosure [Abstract]
2015	$ 10,595
2016	10,864
2017	11,138
2018	14,339
2019	262,474
Thereafter	36,306
Long-term debt	$ 345,716

Long-Term Obligations - Schedule of Aggregate Maturities for Capital Leases (Detail) $ in Thousands	Dec. 31, 2014 USD ($)
Debt Disclosure [Abstract]
2015	$ 6,946
2016	6,954
2017	6,945
2018	10,716
2019	10,715
Thereafter	38,919
Total minimum principal & interest payments	81,195
Less: Amount representing interest	(16,019)
Total capital lease obligations	$ 65,176

Long-Term Obligations - Additional Information (Detail)							1 Months Ended		3 Months Ended				12 Months Ended
Long-Term Obligations - Additional Information (Detail)	Dec. 31, 2014 USD ($)	Dec. 28, 2014	Oct. 21, 2014 USD ($)	Sep. 22, 2014	May 29, 2014	Aug. 30, 2013 USD ($)	Jan. 31, 2014	Oct. 30, 2013	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Jun. 30, 2014 USD ($)	Sep. 30, 2013 USD ($)	Dec. 31, 2014 USD ($) Lease Vessel	Nov. 20, 2014 USD ($)
Debt Instrument [Line Items]
Original issue discount on Senior Secured Notes	$ 2,345,000								$ 2,345,000				$ 2,345,000
Borrowings from long term debt	345,716,000								345,716,000				$ 345,716,000
Credit agreement interest rate													4.00%
Debt instrument term					18 months
Extended maturity date													Apr. 30, 2019
Lease principal amount outstanding	65,200,000								65,200,000				$ 65,200,000
Aggregate principal amount						$ 125,300,000
Note Payable Collaterized by Schuff's Property and Plant under Revolving Line of Credit Agreement [Member]
Debt Instrument [Line Items]
Line of credit, maximum amount	2,500,000								2,500,000				$ 2,500,000
Credit agreement interest rate													5.25%
Debt instrument, special interest on compensation fund													1.00%
Schuff [Member]
Debt Instrument [Line Items]
Line of credit borrowings	46,100,000								46,100,000				$ 46,100,000
Line of credit outstanding amount	3,900,000								3,900,000				3,900,000
Schuff [Member] \| International LOC [Member]
Debt Instrument [Line Items]
Line of credit borrowings	0								0				0
Line of credit outstanding amount	0								0				0
Credit facility available	2,500,000								2,500,000				$ 2,500,000
ANG [Member]
Debt Instrument [Line Items]
Credit agreement interest rate								5.50%
Debt instrument term													5 years
Term loan principle amount outstanding	800,000
Global Marine Systems Limited [Member]
Debt Instrument [Line Items]
Credit agreement interest rate							3.65%
Debt instrument term				12 months									4 years 6 months
Term loan principle amount outstanding	16,700,000
Novatel Wireless, Inc. [Member]
Debt Instrument [Line Items]
Write of deferred financing cost										$ 400,000
Write of original issue discount										800,000
Minimum [Member]
Debt Instrument [Line Items]
Interest rates on capital leases													4.00%
Maximum [Member]
Debt Instrument [Line Items]
Interest rates on capital leases													10.40%
May Credit Facility [Member]
Debt Instrument [Line Items]
Premiums and other costs										900,000
September Credit Facility [Member]
Debt Instrument [Line Items]
Write of deferred financing cost									500,000
Write of original issue discount									4,500,000
Net of a credit for previous paid funding fees									2,300,000
Schuff Facility [Member]
Debt Instrument [Line Items]
Line of credit, maximum amount	50,000,000								50,000,000				$ 50,000,000
Debt instrument rate description													The Real Estate (2) Term Advance (M&E) has a 5 year amortization period requiring monthly principal payments and a final balloon payment at maturity.
Debt instrument rate description													The Real Estate Term Advance has a floating interest rate of LIBOR plus 4.0% and requires monthly interest payments.
Debt instrument term													5 years
Issuance of note payable collaterized													$ 5,000,000
Line of credit amended date													May 06, 2014
Schuff Facility [Member] \| Note Payable Collateralized by Equipment [Member]
Debt Instrument [Line Items]
Borrowings from long term debt	8,400,000								8,400,000				$ 8,400,000
Debt instrument rate description													The Real Estate (2) Term Advance (M&E) has a floating interest rate of LIBOR plus 4.0% and requires monthly interest payments.
Credit agreement interest rate													4.00%
Schuff Facility [Member] \| Real Estate (2) Term Advance (Working Capital) [Member]
Debt Instrument [Line Items]
Borrowings from long term debt	$ 0								$ 0				$ 0
Schuff Facility [Member] \| First Priority Secured Notes [Member]
Debt Instrument [Line Items]
Credit agreement interest rate		3.25%											3.00%
Schuff Facility [Member] \| Maximum [Member] \| Note Payable Collateralized by Equipment [Member]
Debt Instrument [Line Items]
Issuance of note payable collaterized			$ 10,000,000
Schuff Facility [Member] \| Maximum [Member] \| Real Estate (2) Term Advance (Working Capital) [Member]
Debt Instrument [Line Items]
Issuance of note payable collaterized			$ 5,000,000
Maritime Equipment [Member]
Debt Instrument [Line Items]
Number of leases \| Lease													2
Innovator Lease [Member]
Debt Instrument [Line Items]
Number of vessels \| Vessel													2
Lease extension period													1 year
Lease interest rate													10.40%
Innovator Lease [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Lease expiration period													2018
Innovator Lease [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Lease expiration period													2022
Cable Lease [Member]
Debt Instrument [Line Items]
Lease expiration period													2023
Lease interest rate													4.00%
10% Senior Secured Notes Due 2017 [Member]
Debt Instrument [Line Items]
Senior Secured Notes	10.00%								10.00%				10.00%
Percentage of redemption from aggregate principal amount						106.50%
Premiums and other costs												$ 800,000
Aggregate principal amount						$ 12,700,000
Deferred financing costs												800,000
Original issue discount included in gain (loss) on early extinguishment or restructuring of debt												100,000
10% Senior Secured Exchange Notes Due 2017 [Member]
Debt Instrument [Line Items]
Senior Secured Notes	10.00%								10.00%				10.00%
Percentage of redemption from aggregate principal amount						100.00%
Aggregate principal amount						$ 112,600,000
Deferred financing costs												14,800,000
Original issue discount included in gain (loss) on early extinguishment or restructuring of debt												500,000
13% Senior Secured Notes Due 2016 [Member]
Debt Instrument [Line Items]
Senior Secured Notes	13.00%								13.00%				13.00%
Percentage of redemption from aggregate principal amount						106.50%
Premiums and other costs												200,000
Deferred financing costs												3,700,000
Original issue discount included in gain (loss) on early extinguishment or restructuring of debt												$ 20,000
Principal amount outstanding						$ 2,400,000
Senior Secured Notes due 2019 [Member]
Debt Instrument [Line Items]
Aggregate principle amount														$ 250,000,000
Senior Secured Notes														11.00%
Notes indenture date													Nov. 20, 2014
Original issue discount on Senior Secured Notes														$ 2,400,000
Senior Secured Notes issued at discount percentage														99.05%
Debt instrument, Maturity date													Dec. 01, 2019
Debt instrument, Frequency of periodic payment													Interest on the 11% Notes is paid semi-annually on December 1 and June 1 of each year.
Debt instrument, Accrued interest	11.00%								11.00%				11.00%
Senior Secured Notes purchase price percentage													101.00%
Percentage of redemption from aggregate principal amount													100.00%
Redemption date of Senior Notes													Dec. 01, 2016
Senior Secured Notes due 2019 [Member] \| Before December 1, 2016 [Member]
Debt Instrument [Line Items]
Debt instrument redemption premiums description													The make-whole premium is the greater of (i) 1% of principal amount or (ii) the excess of the present value of redemption price at December 1, 2016 plus all required interest payments through December 1, 2016 over the principal amount.
Senior Secured Notes due 2019 [Member] \| After December 1, 2016 [Member]
Debt Instrument [Line Items]
Debt instrument redemption premiums description													The Company is required to make an offer to purchase the 11% Notes upon a change of control. The purchase price will equal 101% of the principal amount of the 11% Notes on the date of purchase plus accrued interest.
Partial Prepayments [Member] \| May Credit Facility [Member]
Debt Instrument [Line Items]
Write of deferred financing cost										100,000	$ 100,000
Write of original issue discount										1,900,000	$ 200,000
Payoff [Member] \| May Credit Facility [Member]
Debt Instrument [Line Items]
Write of deferred financing cost										300,000
Write of original issue discount										$ 2,500,000

Income Taxes - Provisions (Benefits) for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Current: Federal	$ 5,527	$ (256)
State	1,600	147	$ 33
Foreign	228	(7,333)	(3,165)
Subtotal Current	7,355	(7,442)	(3,132)
Deferred: Federal	(29,620)
State	(2,219)
Foreign	0	0	0
Subtotal Deferred	(31,838)
Income tax (benefit) expense	$ (24,484)	$ (7,442)	$ (3,132)

Income Taxes - Components of Income from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
US	$ (41,256)	$ (24,833)	$ (43,821)
Foreign	4,011	(221)	(4,182)
Income (loss) from continuing operations before income taxes	$ (37,245)	$ (25,054)	$ (48,003)

Income Taxes - Federal Statutory Income Tax Rate to Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Tax provision (benefit) at federal statutory rate	$ (13,036)	$ (8,769)	$ (16,801)
Permanent differences	335	(536)	7,660
State tax (net of federal benefit)	1,004	95	44
Effect of foreign tax rate change	(1,083)	(235)	(2,828)
Foreign withholding taxes (net of federal)	231	(3,759)	725
Reverse book loss on notes			19,767
Reverse AU book loss on notes			24,034
Uncertain tax positions		(3,575)
Increase (decrease) in valuation allowance	(17,299)	6,642	(41,692)
Contingent Value Rights		(5,216)	(452)
Reversing deferred taxes		(365)	3,890
Debt exchange costs		7,393
Transaction costs		(1,338)
UK Sterwardship costs		1,455	2,509
199 Manufacturing Deduction	(594)
Bargain Purchase Gain	(496)
Officer Life Insurance Proceeds	(392)
Legal Fees / Acquisitions	3,391
Foreign E&P	3,395
Other	60	766	12
Income tax (benefit) expense	$ (24,484)	$ (7,442)	$ (3,132)

Income Taxes - Additional Information (Detail) - USD ($)		12 Months Ended
	May 29, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Operating Loss Carryforwards [Line Items]
Valuation allowances		$ (17,299,000)	$ 6,642,000	$ (41,692,000)
NOLs derecognized in financial statements	$ 149,000,000
Remaining pre-change NOLs recorded in financial statements	43,300,000
Annual limitation on ownership change	$ 2,200,000
Total unrecognized tax benefits		0.0	$ 35,196,000	$ 66,161,000	$ 86,206,000
Global Marine Systems Limited [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward		230,100,000
United States [Member]
Operating Loss Carryforwards [Line Items]
United States operating loss carryforwards		60,100,000
Deductions from stock compensation plan		$ 7,900,000
United States operating loss carryforwards, expiration period		2034
United States [Member] \| Subject to Limitation [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards limit amount under Internal Revenue Code		$ 43,300,000
United States [Member] \| Not subject to limitation [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards limit amount under Internal Revenue Code		16,800,000
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward		248,700,000
Operating loss carryforward subject to expiration		$ 0

Income Taxes - Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Deferred tax assets	$ 115,736	$ 138,334
Valuation allowance	(69,020)	(118,323)
Deferred tax liabilities	(29,204)	$ (20,011)
Net deferred taxes	$ 17,512

Income Taxes - Significant Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Allowance for bad debt, Current	$ 351	$ 905
Other, Current	1,494	1,675
Valuation allowance, Current	(144)	(2,580)
Total Current	1,701
Basis difference in intangibles, Non-current	(7,527)	2,105
Capital loss carryforwards, Non-current	0	1,726
Net operating loss carryforwards, Non-current	26,440	96,230
Basis difference in fixed assets, Non-current	4,763	15,560
Deferred compensation, Non-current	7,127
UK Trading loss carryforward, Non-current	52,932
Other	952	122
Valuation allowance, Non-current	(68,876)	$ (115,743)
Total Non-current	$ 15,811

Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Unrecognized tax benefits beginning Balance	$ 35,196,000	$ 66,161,000	$ 86,206,000
Foreign currency adjustments	0	0	0
Statute expiration		(3,295,000)	(1,172,000)
Gross increases (decreases) of tax positions in prior period	(35,196,000)	(28,178,000)	(21,496,000)
Audit resolution	0	0	0
Gross increases of tax positions in current period		508,000	2,623,000
Unrecognized tax benefits ending Balance	$ 0.0	$ 35,196,000	$ 66,161,000

Commitments and Contingencies - Purchase Obligations and Non-Cancellable Operating Leases (Detail) $ in Thousands	Dec. 31, 2014 USD ($)
Operating Leases
2015	$ 4,209
2016	3,914
2017	3,249
2018	2,433
2019	1,927
Thereafter	10,263
Total long-term obligations	$ 25,995

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions		12 Months Ended
	Jun. 16, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Loss Contingencies [Line Items]
Rent expense		$ 5.7	$ 2.1	$ 2.5
Second lawsuit filed in court, date		Nov. 17, 2014
Xplornet [Member]
Loss Contingencies [Line Items]
Damages foregone amount	$ 50.0

Employee Retirement Plans - Additional Information (Detail)						3 Months Ended	12 Months Ended
	Dec. 31, 2014 USD ($)	Oct. 01, 2013	Mar. 31, 2012 USD ($)	Jan. 01, 2012	Dec. 31, 2010 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2014 USD ($) Contributions $ / h	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Sep. 22, 2014 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Defined contribution section employees contribution							50.00%
Defined benefit, Maximum employees contributions percentage							6.00%
Employee annual salary contributions capped							$ 6,000
Defined benefit, Matching contribution amount							$ 88,000	$ 215,000	$ 368,000
Defined benefit pension plan contribution made by employer						$ 8,000
Actuarial valuation assumption used, increase in return on investment per year	4.50%					4.50%	4.50%
Market value of defined benefit plan assets	$ 181,877,000					$ 181,877,000	$ 181,877,000			$ 160,812,000
Contributions due to payable to plans	$ 100,000					100,000	100,000
Aggregate net pension cost						357,000	(357,000)
Net recognized benefit cost and other comprehensive income							68,000
Defined benefit plans, gain (loss) included in other comprehensive income						1,129,000	$ 1,100,000
Benefits increasing with RPI limited, percentage							5.00%
Estimated aggregate net actuarial loss and prior service cost to be amortized next year							$ 172,000
Aggregate expected contributions towards benefit plans							6,300,000
Schuff [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit, Matching contribution amount							$ 373,000
Global Marine Systems Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit, Maximum employees contributions percentage							5.00%
Defined benefit, minimum employees contributions percentage							8.00%
Defined benefit, employer contributions percentage				19.50%			9.20%
Defined benefit, employer deficit contributions per year							$ 1,500,000
Actuarial valuation assumption used, Retail Price Inflation rate per year								3.70%
Actuarial valuation assumption used, Consumer Price Inflation rate per year								2.70%
Actuarial valuation assumption used, pre-retirement return on investment per year	5.70%							5.50%
Actuarial valuation assumption used, post-retirement return on investment per year	4.80%							4.50%
Actuarial valuation assumption used, increase in return on investment per year								3.00%
Market value of defined benefit plan assets	$ 169,539,000		$ 1,900,000		$ 2,000,000	$ 169,539,000	169,539,000	$ 146,700,000
Percentage of market value of defined benefit plan assets			0.05594%					74.00%
Contributions payable every month during year 2014							500,000
Contributions payable every month during year 2015 to 2018							500,000
Contributions payable every month during year 2019 to may 2021							600,000
Contributions payable in june 2021							$ 200,000
Percentage of profits after tax before dividends							10.00%
Profit related component description							GMSL will pay 10% of profits after tax before dividends. This will be paid up to two years following the year end to enable budgeting and cash flow control
Percentage of future dividend payable in cash							50.00%
Expected rate of pensions increase per year	3.40%					3.40%	3.40%
Inflation rate percentage	3.70%
Amount of past service shortfall					$ 600,000
Percentage of funding ratio					76.00%
Amount of annual contributions							$ 100,000
Number of annual contributions \| Contributions							7
Amount of annual contributions, description							Seven annual contributions of $0.1 million from December 31, 2014 to 2020.
Global Marine Systems Pension Plan [Member] \| Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined contribution section employees contribution							7.50%
Global Marine Systems Pension Plan [Member] \| Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined contribution section employees contribution							2.00%
Global Marine Personal Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit, Maximum employees contributions percentage							7.50%
Defined benefit, Matching contribution amount						$ 400,000
Defined benefit, minimum employees contributions percentage							2.00%
Defined benefit, Employer matching rate plus an additional fixed contributions percentage							5.00%
Merchant Navy Officers Pension Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit, employer contributions percentage		20.00%
Actuarial valuation assumption used, Retail Price Inflation rate per year			3.20%
Actuarial valuation assumption used, Consumer Price Inflation rate per year			2.20%
Actuarial valuation assumption used, pre-retirement return on investment per year			5.70%
Actuarial valuation assumption used, post-retirement return on investment per year			4.00%
Actuarial valuation assumption used, increase in return on investment per year			4.20%
Market value of defined benefit plan assets	$ 3,104,000		$ 3,500,000			3,104,000	$ 3,104,000
Expected rate of pensions increase per year			3.00%
Deficit contributions receivable amount			$ 528,000,000
Percentage of accrued service and projected salaries			94.00%
Union Steelworkers [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit pension plan contribution made by employer							$ 89,000
Discretionary matching contributions vested percentage							100.00%
Profit share contributions, probationary period							640 hours
Discretionary matching contributions vested period							3 years
Profit share contributions rate for each hour \| $ / h							0.55
Schuff [Member] \| Union Steelworkers [Member]
Defined Benefit Plan Disclosure [Line Items]
Discretionary matching contributions vested percentage							100.00%
Schuff [Member] \| California Ironworkers Field Pension Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit pension plan contribution made by employer							$ 2,500,000
Schuff [Member] \| California Ironworkers Field Pension Trust [Member] \| Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of employees covered under plan							5.00%
Schuff [Member] \| Steelworkers Pension Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension withdrawal liability	$ 600,000		$ 2,600,000			$ 600,000	$ 600,000	$ 2,400,000
Defined benefit pension plan contribution made by employer							$ 200,000
Ex CARE [Member] \| Global Marine Personal Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit, Maximum employees contributions percentage							7.50%
Defined benefit, minimum employees contributions percentage							2.50%

Employee Retirement Plans - Schedule of Change in Projected Benefit Obligation (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Projected benefit obligation, beginning balance	$ 206,735
Service cost - benefits earning during the period	14	$ 14
Interest cost on projected benefit obligation	2,017	1,978
Contributions	8
Actuarial loss	12,480
Benefits paid	(2,167)
Projected benefit obligation, ending balance	$ 219,087	$ 219,087

Employee Retirement Plans - Schedule of Change in Value of Assets of Plans (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Beginning balance	$ 160,812
Actual return on plan assets	14,873
Benefits paid	(2,167)
Contributions	6,641
Foreign currency gain (loss)	1,718
Ending balance	181,877
Unfunded status at end of year	$ 37,210

Employee Retirement Plans - Schedule of Amounts Recognized in Consolidated Balance Sheets (Detail) $ in Thousands	Dec. 31, 2014 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Pension liability	$ 31,244
Global Marine Systems Limited [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension liability	37,210
Net amount recognized	$ 37,210

Employee Retirement Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Service cost-benefits earning during the period	$ 14,000	$ 14,000
Interest cost on projected benefit obligation	2,017,000	1,978,000
Expected return on assets		(1,923,000)
Actuarial (gain) loss		(426,000)
Net pension benefit	$ 357,000	$ (357,000)

Employee Retirement Plans -Weighted Average Rate of Assumptions for Asset Allocation Plans (Detail)	12 Months Ended
	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Discount rate	3.60%
Rate of compensation increases (Merchant Navy Officers Pension Fund only)	4.50%
Rate of future RPI inflation	3.00%
Rate of future CPI inflation	2.00%
Pension increases in payment	2.85%
Long-term rate of return on assets	4.43%

Employee Retirement Plans - Net Actuarial Loss (Gain) and Prior Service Cost Included in Accumulated Other Comprehensive Income (Detail) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2014 USD ($)	Dec. 31, 2014 USD ($)
Compensation and Retirement Disclosure [Abstract]
Net loss (gain)	$ (1,129)	$ (1,100)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	(1,129)
Actuarial (gain) loss	(1,129)
Total recognized in other comprehensive (income) loss	(1,129)
Balance at December 31, 2014	$ (1,129)	$ (1,129)

Employee Retirement Plans - Schedule of Expected Benefit Payments under Pension and Postretirement Plans (Detail) $ in Thousands	Dec. 31, 2014 USD ($)
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
2015	$ 5,736
2016	5,885
2017	6,037
2018	6,194
2019	6,355
Thereafter	34,336
Total	$ 64,543

Employee Retirement Plans - Summary of Plans' Weighted-Average Asset Targets and Actual Allocations as Percentage of Plan Assets (Detail)	12 Months Ended
	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset actual allocations as a percentage of plan assets	100.00%
Liability Hedging [Member]
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset targets allocations as a percentage of plan assets	25.00%
Weighted-average asset actual allocations as a percentage of plan assets	21.50%
Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset targets allocations as a percentage of plan assets	24.20%
Weighted-average asset actual allocations as a percentage of plan assets	24.60%
Hedge Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset targets allocations as a percentage of plan assets	24.70%
Weighted-average asset actual allocations as a percentage of plan assets	25.50%
Corporate Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset targets allocations as a percentage of plan assets	13.80%
Weighted-average asset actual allocations as a percentage of plan assets	14.90%
Emerging Markets [Member]
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset targets allocations as a percentage of plan assets	5.60%
Weighted-average asset actual allocations as a percentage of plan assets	5.00%
Property [Member]
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset targets allocations as a percentage of plan assets	3.70%
Weighted-average asset actual allocations as a percentage of plan assets	4.00%
Other [Member]
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset targets allocations as a percentage of plan assets	3.00%
Weighted-average asset actual allocations as a percentage of plan assets	4.50%

Employee Retirement Plans - Summary of GMSL's Investments Plan (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Sep. 22, 2014	Dec. 31, 2013	Mar. 31, 2012	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	$ 181,877	$ 160,812
Present value of liabilities	(219,087)	$ (206,735)
Global Marine Systems Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	169,539		$ 146,700	$ 1,900	$ 2,000
Present value of liabilities	(206,853)
Net pension asset (liability)	(37,314)
Global Marine Systems Pension Plan [Member] \| Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	45,198
Global Marine Systems Pension Plan [Member] \| Liability Hedging Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	39,626
Global Marine Systems Pension Plan [Member] \| Hedge Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	40,853
Global Marine Systems Pension Plan [Member] \| Corporate Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	20,238
Global Marine Systems Pension Plan [Member] \| Property [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	8,847
Global Marine Systems Pension Plan [Member] \| Other [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	14,777
Merchant Navy Officers Pension Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	3,104			$ 3,500
Present value of liabilities	(3,000)
Net pension asset (liability)	104
Merchant Navy Officers Pension Fund [Member] \| Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	699
Merchant Navy Officers Pension Fund [Member] \| Hedge Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	435
Merchant Navy Officers Pension Fund [Member] \| Corporate Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	715
Merchant Navy Officers Pension Fund [Member] \| LDI Strategy [Member]
Defined Benefit Plan Disclosure [Line Items]
Total market value of assets	$ 1,255

Employee Retirement Plans - Summary of Fair Value of Pension Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Sep. 22, 2014	Dec. 31, 2013	Mar. 31, 2012	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	$ 181,877	$ 160,812
Global Marine Systems Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	169,539		$ 146,700	$ 1,900	$ 2,000
Global Marine Systems Pension Plan [Member] \| Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	45,198
Global Marine Systems Pension Plan [Member] \| Liability Hedging Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	39,626
Global Marine Systems Pension Plan [Member] \| Hedge Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	40,853
Global Marine Systems Pension Plan [Member] \| Corporate Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	20,238
Global Marine Systems Pension Plan [Member] \| Property [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	8,847
Global Marine Systems Pension Plan [Member] \| Other [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	14,777
Merchant Navy Officers Pension Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	3,104			$ 3,500
Merchant Navy Officers Pension Fund [Member] \| Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	699
Merchant Navy Officers Pension Fund [Member] \| Hedge Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	435
Merchant Navy Officers Pension Fund [Member] \| Corporate Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	715
Merchant Navy Officers Pension Fund [Member] \| LDI Strategy [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	1,255
Level 1 [Member] \| Global Marine Systems Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	14,777
Level 1 [Member] \| Global Marine Systems Pension Plan [Member] \| Other [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	14,777
Level 2 [Member] \| Global Marine Systems Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	154,762
Level 2 [Member] \| Global Marine Systems Pension Plan [Member] \| Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	45,198
Level 2 [Member] \| Global Marine Systems Pension Plan [Member] \| Liability Hedging Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	39,626
Level 2 [Member] \| Global Marine Systems Pension Plan [Member] \| Hedge Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	40,853
Level 2 [Member] \| Global Marine Systems Pension Plan [Member] \| Corporate Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	20,238
Level 2 [Member] \| Global Marine Systems Pension Plan [Member] \| Property [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	8,847
Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	3,104		$ 2,908
Level 3 [Member] \| Merchant Navy Officers Pension Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	3,104
Level 3 [Member] \| Merchant Navy Officers Pension Fund [Member] \| Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	699
Level 3 [Member] \| Merchant Navy Officers Pension Fund [Member] \| Hedge Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	435
Level 3 [Member] \| Merchant Navy Officers Pension Fund [Member] \| Corporate Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	715
Level 3 [Member] \| Merchant Navy Officers Pension Fund [Member] \| LDI Strategy [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Plan Net Assets	$ 1,255

Employee Retirement Plans - Summary of Changes in Fair Value of Level 3 Pension Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	$ 160,812
Actual return on plan assets	14,873
Contributions	8
Benefits paid	(2,167)
Ending balance	181,877	$ 181,877
Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Beginning balance		2,908
Actual return on plan assets		165
Contributions		59
Benefits paid		(28)
Ending balance	$ 3,104	$ 3,104

Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Dec. 31, 2013	Jan. 31, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted			3,452,767	690,948
Weighted average fair value at date of grant for options granted			$ 2.03	$ 0.26	$ 1.63
Share-based compensation expense recognized			$ 11,487	$ 2,286	$ 5,194
Share-based compensation expense recognized from accelerated vesting				$ 1,500
Intrinsic value of exercised options			$ 300
Dividend Adjustments [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted				650,948
Weighted average exercise price of options granted				$ 3.13
Options forfeited				203,654
Weighted average exercise price of options forfeited				$ 10.02
Philip Falcone [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted			3,350,946
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ 1,200
Weighted average remaining period			1 year 6 months
Unvested shares expected to vest			338,702
RSU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs awarded to certain employees, Vesting	28,833	15,000		98,280
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock outstanding awards	589,859		3,573,141	589,859	212,244
Options granted			3,452,767	690,948
Weighted average remaining period			1 year 8 months 12 days
Weighted average exercise price of options granted			$ 4.30	$ 3.64
Options forfeited			239,185	237,769
Weighted average exercise price of options forfeited			$ 4.40	$ 9.07
Unvested stock options outstanding			2,312,498
Compensation expense			$ 4,000
Unvested shares expected to vest			2,312,498
Weighted average remaining life			9 years 6 months
Weighted average exercise price			$ 4.27
Intrinsic value			$ 14,800
Omnibus Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares authorized to issue			5,000,000
Prior Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock outstanding awards			472,002

Share-Based Compensation - Fair Value of Each Option Grant Estimated (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected option life	5 years 6 months	4 years	4 years
Risk-free interest rate	1.61%	1.17%	0.57%
Expected volatility	36.74%	35.55%	35.83%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected option life	6 years	5 years 9 months	5 years 9 months
Risk-free interest rate	2.73%	1.73%	0.89%
Expected volatility	40.50%	37.23%	36.64%

Share-Based Compensation - Summary of Company's Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Summary of Company's restricted stock units, Shares
Shares, Beginning Balance, Unvested	22,500	286,208
Shares, Granted	502,172	20,000
Shares, Vested	(185,970)	(283,626)
Shares, Forfeitures		(82)
Shares, Ending Balance, Unvested	338,702	22,500
Summary of Company's restricted stock units, Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value, Unvested, Beginning balance	$ 13.59	$ 12.91
Weighted Average Grant Date Fair Value, Granted	4.21	11.89
Weighted Average Grant Date Fair Value, Vested	5.25	12.79
Weighted Average Grant Date Fair Value, Forfeitures		15.60
Weighted Average Grant Date Fair Value, Unvested, Ending balance	$ 4.26	$ 13.59

Share-Based Compensation - Summary of Company's Stock Option Activity (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Granted	3,452,767	690,948
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Outstanding, Beginning Balance	589,859	212,244
Shares, Granted	3,452,767	690,948
Shares, Exercised	(230,300)	(75,564)
Shares, Forfeitures	(239,185)	(237,769)
Shares Outstanding, Ending Balance	3,573,141	589,859
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 3.17	$ 9.24
Shares, Eligible for exercise	1,260,643
Weighted Average Exercise Price, Granted	$ 4.30	3.64
Weighted Average Exercise Price, Exercised	2.43	5.93
Weighted Average Exercise Price, Forfeitures	4.40	9.07
Weighted Average Exercise Price, Outstanding, Ending Balance	4.27	$ 3.17
Weighted Average Exercise Price, Eligible for exercise	$ 4.22

Share-Based Compensation - Intrinsic Values and Remaining Contractual Terms of Company's Stock Options (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2014 USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Intrinsic Value, Options outstanding	$ 14,828
Intrinsic Value, Options exercisable	$ 5,292
Weighted Average Remaining Life in Years, Options outstanding	9 years 6 months
Weighted Average Remaining Life in Years, Options exercisable	9 years 3 months 18 days

Equity - Additional Information (Detail) - USD ($)				1 Months Ended	12 Months Ended
Equity - Additional Information (Detail) - USD ($)	Jan. 05, 2015	Sep. 22, 2014	May 29, 2014	Jul. 31, 2009	Dec. 31, 2014	Dec. 31, 2013
Common stock, shares outstanding					23,813,085	14,225,919
Preferred stock, shares outstanding					41,000	0
Expiry date of warrants					Jul. 01, 2014
Term of warrants				5 years
Warrants expiration date					Jul. 01, 2014
Common stock, shares issued					23,844,711	14,257,545
Beneficial conversion feature					$ 659,000
Schuff [Member]
Common stock, shares issued			1,500,000
Preferred stock cumulative cash dividend rate			7.50%
Preferred stock dividend payment description					The accrued value of the Preferred Stock will accrete quarterly at an annualized rate of 4% that will be reduced to 2% or 0% if the Company achieves specified rates of growth measured by increases in its net asset value.
Preferred stock dividend rate					4.00%
Preferred stock redemption description					Upon a change of control, holders of the Preferred Stock shall be entitled to cause HC2 to redeem their Preferred Stock at a price per share equal to the greater of (i) the accrued value of the Preferred Stock, which amount would be multiplied by 150% in the event of a change in control occurring on or prior to the third anniversary of the issue date plus and accrued but unpaid dividends and (ii) the value that would be received if the share of Preferred Stock were converted into common stock immediately prior to the change of control. At any time after the third anniversary of the issue date, HC2 may redeem the Preferred Stock, in whole but not in part, at a price per share generally equal to 150% of the accrued value per share plus accrued but unpaid dividends. After the third anniversary of the issue date, HC2 may force conversion of the Preferred Stock into common stock if the common stock’s thirty-day volume-weighted average price (“VWAP”) exceeds 150% of the then-applicable conversion price and the common stock’s daily VWAP exceeds 150% of the then-applicable conversion price for at least twenty trading days out of the thirty trading day period used to calculate the thirty-day VWAP.
Preferred stock redemption price per share on accrued and unpaid dividends, percentage					150.00%
Convertible preferred stock volume weighted average price percentage					150.00%
Volume weighted average price threshold percentage					150.00%
Preferred stock force conversion, trading days to calculate volume weighted average price					30 days
Preferred stock trading days to calculate volume weighted average price					20 days
Schuff [Member] \| Maximum [Member]
Preferred stock dividend rate					2.00%
Schuff [Member] \| Minimum [Member]
Preferred stock dividend rate					0.00%
Class A-1 [Member]
Number of warrants entitled for purchase				1,000,000
Warrants exercised					878,940
Issuance of common shares upon warrant exercised					3,855,289
Class A-2 [Member]
Number of warrants entitled for purchase				1,000,000
Warrants exercised					780,753
Issuance of common shares upon warrant exercised					3,424,641
Class A-3 [Member]
Number of warrants entitled for purchase				1,000,000
Warrants exercised					5,709
Issuance of common shares upon warrant exercised					25,041
Class A Warrants [Member]
Aggregate amount of common stock				1,000,000
Class B Warrants [Member]
Aggregate amount of common stock				1,500,000
Series A Preferred Stock [Member]
Beneficial conversion feature					$ 400,000
Convertible common shares					$ 30,000,000
Series A Preferred Stock [Member] \| Maximum [Member]
Intrinsic value					$ 4.05
Series A Preferred Stock [Member] \| Minimum [Member]
Intrinsic value					$ 4.00
Series A Preferred Stock [Member] \| Schuff [Member]
Preferred stock, shares issued			30,000
Series A-1 Convertible Preferred Stock [Member]
Beneficial conversion feature					$ 300,000
Convertible common shares					$ 11,000,000
Series A-1 Convertible Preferred Stock [Member] \| Maximum [Member]
Intrinsic value					$ 4.36
Series A-1 Convertible Preferred Stock [Member] \| Minimum [Member]
Intrinsic value					$ 4.25
Series A-1 Convertible Preferred Stock [Member] \| Schuff [Member]
Preferred stock, shares issued		11,000
Preferred stock conversion price			$ 4.25
Series A-1 Convertible Preferred Stock [Member] \| Schuff [Member] \| Amendment [Member]
Preferred stock conversion price		$ 4.00
Series A-2 Preferred Stock [Member] \| Schuff [Member] \| Subsequent Event [Member]
Preferred stock, shares issued	14,000
Preferred stock conversion price	$ 8.25

Equity - Summary of Cash, PIK and Special Cash Dividends (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Dividend Activity One [Member]
Dividends Payable [Line Items]
Declaration Date	Jun. 30, 2014
Holders of Record Date	Jun. 30, 2014
Payment Date	Jul. 15, 2014
Total Dividend	$ 307
Dividend Activity Two [Member]
Dividends Payable [Line Items]
Declaration Date	Sep. 30, 2014
Holders of Record Date	Sep. 30, 2014
Payment Date	Oct. 15, 2014
Total Dividend	$ 897
Dividend Activity Three [Member]
Dividends Payable [Line Items]
Declaration Date	Dec. 31, 2014
Holders of Record Date	Dec. 31, 2014
Payment Date	Jan. 15, 2015
Total Dividend	$ 777
$8.50 Cash Dividend Per Share [Member]
Dividends Payable [Line Items]
Declaration Date		Aug. 07, 2013
Holders of Record Date		Aug. 20, 2013
Payment Date		Aug. 27, 2013
Total Dividend		$ 119,788

Fair Value of Financial Instruments and Derivatives - Additional Information (Detail) $ in Millions	Dec. 31, 2014 USD ($)
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities at fair value	$ 4.9
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated aggregate fair value of the Company's debt	$ 338.1

Related Parties - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2014 USD ($) shares
Related Party Transaction [Line Items]
Purchases of an asset on behalf of an executive	$ 1.7
Percentage of investment sold	25.00%
Shares purchased from the Chairman of the Board and former executives \| shares	74,625
Proceeds from sale of investment	$ 5.0
Shares purchased from the Chairman of the Board and former executives, amount	$ 2.0
Restricted Stock [Member]
Related Party Transaction [Line Items]
Shares purchased from the Chairman of the Board and former executives \| shares	253,039

Related Parties - Summary of Balance Outstanding of Related Parties (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2014 USD ($)
Commitment, Contingency And Related Party Transactions [Abstract]
Revenue	$ 6,625
Operating costs	900
Capital lease interest	436
Dividends received	3,714
Accounts receivable	2,585
Obligations under capital leases	42,296
Trade creditors	$ 436

- Definition

For an unclassified balance sheet, amount of receivables arising from transactions with related parties.

+ References + Details

Operating Segment and Related Information - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2014 Segment
Segment Reporting [Abstract]
Number of reportable geographic segments	2
Number of reportable operating segments	6
Number of single customer representing greater than 10% of revenues	The Company has no single customer representing greater than 10% of its revenues.

Operating Segment and Related Information - Summary of Company's Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	$ 223,829	$ 179,433	$ 96,586	$ 43,354					$ 543,202	$ 230,686	$ 302,959
Income (loss) from operations	$ (9,317)	$ 75	$ (1,097)	$ (4,087)	$ (18,030)	$ (4,113)	$ (11,491)	$ (5,502)	(14,426)	(39,136)	(51,896)
Capital expenditures									5,819	12,577	31,747
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue									442,472	108,563	100,753
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue									93,417	122,123	202,206
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue									7,313
Telecommunications [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue									161,953	230,686	302,959
Income (loss) from operations									(1,840)	(19,705)	(17,187)
Capital expenditures									42	1,390	1,452
Manufacturing [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue									348,318
Income (loss) from operations									26,359
Capital expenditures									5,039
Utilities [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue									1,839
Income (loss) from operations									(491)
Capital expenditures									803
Marine Services [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue									31,092
Income (loss) from operations									4,368
Capital expenditures									(863)
Life Sciences [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Income (loss) from operations									(4,762)
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Income (loss) from operations									(8,002)
Capital expenditures									798	11,187	29,999
Corporate [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Income (loss) from operations									$ (30,058)	$ (19,431)	(34,709)
Capital expenditures											$ 296

Operating Segment and Related Information - Segment Reporting for Long-term investments, Property and Equipment - Net and Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-term investments	$ 48,674
Total Assets	724,048	$ 87,680	$ 301,190
Property, plant and equipment, net	239,851	2,962	65,315
Telecommunications [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Assets	24,501	33,397	44,710
Life Sciences [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-term investments	1,916
Total Assets	11,007
Manufacturing [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Assets	281,067
Utilities [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Assets	25,391
Marine Services [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-term investments	26,401
Total Assets	283,948
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Assets	6,369	7,423	223,899
Corporate [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-term investments	20,357
Total Assets	91,765	46,860	32,581
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	87,091	2,303	2,335
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	147,323	$ 659
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 5,437		$ 62,980

Quarterly Results of Operations - Schedule of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly Results Of Operations [Line Items]
Net services revenue	$ 66,191	$ 41,321	$ 42,178	$ 43,354	$ 52,199	$ 61,077	$ 58,621	$ 58,789	$ 193,044	$ 230,686	$ 302,959
Sales revenue	157,638	138,112	54,408						350,158
Net revenue	223,829	179,433	96,586	43,354					543,202	230,686	302,959
Cost of revenue-services	54,855	39,464	39,530	41,107	50,611	58,752	55,436	55,516	174,956	220,315	285,631
Cost of revenue-sales	134,025	119,175	43,330						296,530
Total cost of revenue	188,880	158,639	82,860	41,107
Income (loss) from operations	(9,317)	75	(1,097)	(4,087)	(18,030)	(4,113)	(11,491)	(5,502)	(14,426)	(39,136)	(51,896)
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.					(14,074)	(867)	2,921	(5,592)	(14,010)	(17,612)	(44,853)
Income (loss) from discontinued operations	37	(106)	27	17	97	(21,493)	(604)	2,379	(25)	(19,621)	(21,525)
Gain (loss) from sale of discontinued operations		663		(784)	(1,856)	15,650	135,045		(121)	148,839	94,265
Net income (loss)-basic	11,435	(16,883)	(3,761)	(4,947)	(15,833)	(6,710)	137,362	(3,213)	(14,156)	111,606	27,887
Net income (loss)-diluted	$ 11,435	$ (16,883)	$ (3,761)	$ (4,947)	$ (15,833)	$ (6,710)	$ 137,362	$ (3,213)	$ (14,156)	$ 111,606	$ 27,887
Weighted average common shares outstanding-basic	23,813	23,372	16,905	14,631	14,222	14,077	13,972	13,909	19,729	14,047	13,844
Weighted average common shares outstanding-diluted	28,962	23,372	16,905	14,631	14,222	14,077	14,436	13,909	19,729	14,047	13,844
Basic income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.					$ (0.99)	$ (0.06)	$ 0.21	$ (0.40)	$ (0.71)	$ (1.25)	$ (3.24)
Income (loss) from discontinued operations					0.01	(1.53)	(0.04)	0.17		(1.40)	(1.55)
Gain (loss) from sale of discontinued operations		$ 0.03		$ (0.05)	(0.13)	1.11	9.67		(0.01)	10.60	6.81
Net income (loss) attributable to HC2 Holdings, Inc.	$ 0.68	(0.72)	$ (0.22)	(0.34)	(1.11)	(0.48)	9.84	(0.23)	(0.72)	7.95	2.02
Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.					(0.99)	(0.06)	0.20	(0.40)	(0.71)	(1.25)	(3.24)
Income (loss) from discontinued operations					0.01	(1.53)	(0.04)	0.17		(1.40)	(1.55)
Gain (loss) from sale of discontinued operations		0.03		(0.05)	(0.13)	1.11	9.35		(0.01)	10.60	6.81
Net income (loss) attributable to HC2 Holdings, Inc.	$ 0.62	$ (0.72)	$ (0.22)	$ (0.34)	$ (1.11)	$ (0.48)	$ 9.51	$ (0.23)	$ (0.72)	$ 7.95	$ 2.02
Common Stock [Member]
Quarterly Results Of Operations [Line Items]
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$ 7,982	$ (17,440)	$ (3,788)	$ (4,180)
Basic income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$ 0.34	$ (0.75)	$ (0.22)	$ (0.29)
Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$ 0.28	$ (0.75)	$ (0.22)	$ (0.29)
Preferred Stock [Member]
Quarterly Results Of Operations [Line Items]
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$ 3,416
Basic income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$ 0.34
Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$ 0.34

Quarterly Results of Operations - Schedule of Quarterly Results of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended			18 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Income (loss) from operations includes depreciation expense	$ 4,617	$ 12,032	$ 3,204	$ 12,000

Backlog - Additional Information (Detail)	12 Months Ended
Backlog - Additional Information (Detail)	Dec. 31, 2014 USD ($) Contracts
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Backlog amount	$ 357,000,000
Number of contracts attributable to backlog \| Contracts	5
Contracts or Purchase Orders [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Backlog amount	$ 305,300,000
Letters of Intent [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Backlog amount	51,700,000
Five Contracts, Letters of Intent, Notices to Proceed or Purchase Orders [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Backlog amount	$ 203,100,000
Backlog percentage	56.90%

Discontinued Operations - Additional Information (Detail) $ in Thousands, $ in Millions, $ in Millions		1 Months Ended	3 Months Ended				12 Months Ended
	Jul. 31, 2013 USD ($)	Feb. 28, 2014 USD ($)	Sep. 30, 2013 USD ($)	Jun. 30, 2013 USD ($)	Dec. 31, 2012 USD ($)	Jun. 30, 2012 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Oct. 31, 2014 USD ($)	Dec. 31, 2013 CAD ($)	Apr. 17, 2013 USD ($)	Apr. 17, 2013 CAD ($)	May 31, 2012 USD ($)	May 31, 2012 AUD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Escrow deposit recorded							$ 4,800
Amount released from escrow		$ 3,200			$ 5,400
Adjustment to remaining carrying value of discontinued operation			$ 300
Net gain									$ 94,300
Attributed adjustment to the long-lived assets of ICS						$ 10,300
M2 [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amount released from escrow					$ 4,400
York [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amount released from escrow		800
BLACKIRON Data [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Outstanding equity value												$ 195,600	$ 200.0
Gain (loss) from sale of discontinued operations, net of tax				$ 135,000
Proceeds from sale placed in escrow								$ 19,500			$ 20.0
North America Telecom [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) from sale of discontinued operations, net of tax								13,800
Proceeds from sale placed in escrow								15,250
Sale price of outstanding placed in escrow	$ 129,000
Escrow received								126,000
Additional amount held in escrow								$ 3,000
Period of escrow to be released after closing date							14 months
Purchase consideration placed in escrow										$ 6,450
North America Telecom [Member] \| Working Capital Adjustment [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase consideration placed in escrow		$ 4,000
North America Telecom [Member] \| Income Tax Related Liabilities [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Period of escrow to be released after closing date							30 days
Purchase consideration placed in escrow							$ 4,800
Primus Australian [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Outstanding equity value														$ 195,700	$ 192.4
Gain (loss) from sale of discontinued operations, net of tax						98,600
Proceeds from sale placed in escrow						$ 9,800

Discontinued Operations - Summarized Operating Results of Discontinued Operations and Assets and Liabilities Classified as Held for Sale (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue									$ 7,530	$ 132,515	$ 375,264
Operating expenses									7,610	119,392	343,263
Income from operations									(80)	13,123	32,001
Interest expense									(17)	(11,362)	(24,621)
Gain (loss) on early extinguishment or restructuring of debt									(11,969)	(21,124)	(21,682)
Interest income and other income (expense)									(60)	(51)	283
Foreign currency transaction loss										(378)	(2,550)
Loss before income tax									(157)	(19,792)	(16,569)
Income tax benefit (expense)									132	171	(4,956)
Income from discontinued operations	$ 37	$ (106)	$ 27	$ 17	$ 97	$ (21,493)	$ (604)	$ 2,379	(25)	(19,621)	$ (21,525)
Prepaid expenses and other current assets	4,800								4,800
Assets held for sale	$ 3,865				6,329				$ 3,865	6,329
Accrued expenses and other liabilities					4,823					4,823
North America Telecom [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accounts receivable					670					670
Prepaid expenses and other current assets					839					839
Long-lived assets and other non-current assets					4,820					4,820
Assets held for sale					6,329					6,329
Accounts payable					869					869
Accrued interconnection costs					420					420
Accrued expenses and other liabilities					3,534					3,534
Liabilities held for sale					$ 4,823					$ 4,823

Discontinued Operations - Summarized Operating Results of Discontinued Operations and Assets and Liabilities Classified as Held for Sale (Parenthetical) (Detail) $ in Millions	Dec. 31, 2013 USD ($)
Discontinued Operations and Disposal Groups [Abstract]
Remaining amount of goodwill of US reporting unit	$ 3.7
Remaining amount of customer relationships of US reporting unit	$ 0.4

Basic and Diluted Income (Loss) Per Common Share - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive common share equivalents	0	0	0
Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities included in computation of earnings per share, Stock Options and RSUs	200,000	600,000
Antidilutive securities excluded from computation of earnings per share			500,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities included in computation of earnings per share, Warrants		19,500,000
Antidilutive securities excluded from computation of earnings per share			6,200,000
Contingent Value Rights [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share			3,700,000

Basic and Diluted Income (Loss) Per Common Share - Basic Income (Loss) Per Common Share to Diluted Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Share [Abstract]
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.					$ (14,074)	$ (867)	$ 2,921	$ (5,592)	$ (14,010)	$ (17,612)	$ (44,853)
Income (loss) from discontinued operations	$ 37	$ (106)	$ 27	$ 17	97	(21,493)	(604)	2,379	(25)	(19,621)	(21,525)
Gain (loss) from sale of discontinued operations		663		(784)	(1,856)	15,650	135,045		(121)	148,839	94,265
Net income (loss)-basic	11,435	(16,883)	(3,761)	(4,947)	(15,833)	(6,710)	137,362	(3,213)	(14,156)	111,606	27,887
Net income (loss)-diluted	$ 11,435	$ (16,883)	$ (3,761)	$ (4,947)	$ (15,833)	$ (6,710)	$ 137,362	$ (3,213)	$ (14,156)	$ 111,606	$ 27,887
Weighted average common shares outstanding-basic	23,813	23,372	16,905	14,631	14,222	14,077	13,972	13,909	19,729	14,047	13,844
Weighted average common shares outstanding-diluted	28,962	23,372	16,905	14,631	14,222	14,077	14,436	13,909	19,729	14,047	13,844
Basic income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.					$ (0.99)	$ (0.06)	$ 0.21	$ (0.40)	$ (0.71)	$ (1.25)	$ (3.24)
Income (loss) from discontinued operations					0.01	(1.53)	(0.04)	0.17		(1.40)	(1.55)
Gain (loss) from sale of discontinued operations		$ 0.03		$ (0.05)	(0.13)	1.11	9.67		(0.01)	10.60	6.81
Net income (loss) attributable to HC2 Holdings, Inc.	$ 0.68	(0.72)	$ (0.22)	(0.34)	(1.11)	(0.48)	9.84	(0.23)	(0.72)	7.95	2.02
Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.					(0.99)	(0.06)	0.20	(0.40)	(0.71)	(1.25)	(3.24)
Income (loss) from discontinued operations					0.01	(1.53)	(0.04)	0.17		(1.40)	(1.55)
Gain (loss) from sale of discontinued operations		0.03		(0.05)	(0.13)	1.11	9.35		(0.01)	10.60	6.81
Net income (loss) attributable to HC2 Holdings, Inc.	$ 0.62	$ (0.72)	$ (0.22)	$ (0.34)	$ (1.11)	$ (0.48)	$ 9.51	$ (0.23)	$ (0.72)	$ 7.95	$ 2.02

Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Series A-2 Preferred Stock [Member] - Schuff [Member]	Jan. 05, 2015 $ / shares shares
Subsequent Event [Line Items]
Preferred stock, shares issued \| shares	14,000
Preferred stock conversion price \| $ / shares	$ 8.25

Schedule II Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Doubtful Accounts Receivable [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 2,476	$ 1,771	$ 7,552
Charged to Costs and Expenses	403	1,507	4,819
Deductions	(119)	2,816	7,411
Other		2,014	(3,189)
Balance at End of Period	2,760	2,476	1,771
Deferred Tax Asset Valuation [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	118,323	149,494	144,611
Charged to Costs and Expenses	(49,303)	(31,171)	4,883
Balance at End of Period	$ 69,020	$ 118,323	$ 149,494

Schedule II Valuation and Qualifying Accounts (Parenthetical) (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Primus Australian [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance for doubtful accounts receivable		$ (1,859)
ICS [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance for doubtful accounts receivable		$ (1,330)
Reclassified Out of Assets Held for Sale [Member] \| ICS [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance for doubtful accounts receivable	$ (2,111)
Net Assets Held for Sale [Member] \| Primus Telecommunications Inc [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance for doubtful accounts receivable	$ (97)