XML 247 R35.htm IDEA: XBRL DOCUMENT v3.22.2.2
Business Segments (Tables)
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Reportable Segments
The following tables set forth certain reportable segment information relating to the Company’s operations for the three and nine months ended September 30, 2022 and 2021:
Reportable Segments
(in thousands)CivilBuildingSpecialty
Contractors		TotalCorporateConsolidated
Total
Three Months Ended September 30, 2022
Total revenue$564,205 $341,614 $251,974 $1,157,793 $— $1,157,793 
Elimination of intersegment revenue(63,300)(23,564)(3)(86,867)— (86,867)
Revenue from external customers$500,905 $318,050 $251,971 $1,070,926 $— $1,070,926 
Income (loss) from construction operations$22,786 $56 $(11,836)$11,006 
(a)
$(17,898)
(b)
$(6,892)
Capital expenditures$11,872 $921 $748 $13,541 $423 $13,964 
Depreciation and amortization(c)
$12,166 $470 $529 $13,165 $2,368 $15,533 
Three Months Ended September 30, 2021
Total revenue$624,549 $395,013 $271,316 $1,290,878 $— $1,290,878 
Elimination of intersegment revenue(78,331)(34,072)(253)(112,656)— (112,656)
Revenue from external customers$546,218 $360,941 $271,063 $1,178,222 $— $1,178,222 
Income (loss) from construction operations$62,555 $10,786 $(5,470)$67,871 $(15,778)
(b)
$52,093 
Capital expenditures$7,847 $87 $134 $8,068 $234 $8,302 
Depreciation and amortization(c)
$26,234 $416 $777 $27,427 $2,634 $30,061 
____________________________________________________________________________________________________
(a)During the three months ended September 30, 2022, the Company’s income (loss) from construction operations was adversely impacted by a $14.3 million ($10.2 million, or $0.20 per diluted share, after tax) unfavorable adjustment on a completed Civil segment highway project in the Northeast due to the reversal on appeal of a previously favorable lower-court ruling.
(b)Consists primarily of corporate general and administrative expenses.
(c)Depreciation and amortization is included in income (loss) from construction operations.
Reportable Segments
(in thousands)CivilBuildingSpecialty
Contractors		TotalCorporateConsolidated
Total
Nine Months Ended September 30, 2022
Total revenue$1,478,162 $960,148 $673,302 $3,111,612 $— $3,111,612 
Elimination of intersegment revenue(182,840)(44,509)(156)(227,505)— (227,505)
Revenue from external customers$1,295,322 $915,639 $673,146 $2,884,107 $— $2,884,107 
Income (loss) from construction operations$12,052 $9,453 $(82,461)$(60,956)
(a)
$(46,397)
(b)
$(107,353)
Capital expenditures$38,703 $973 $2,202 $41,878 $931 $42,809 
Depreciation and amortization(c)
$44,191 $1,261 $1,539 $46,991 $7,063 $54,054 
Nine Months Ended September 30, 2021
Total revenue$1,850,748 $1,267,984 $877,634 $3,996,366 $— $3,996,366 
Elimination of intersegment revenue(273,603)(117,150)(553)(391,306)— (391,306)
Revenue from external customers$1,577,145 $1,150,834 $877,081 $3,605,060 $— $3,605,060 
Income (loss) from construction operations$187,733 $19,514 $5,814 $213,061 
(d)
$(42,511)
(b)
$170,550 
Capital expenditures$26,027 $211 $298 $26,536 $626 $27,162 
Depreciation and amortization(c)
$80,125 $1,272 $2,628 $84,025 $8,171 $92,196 
____________________________________________________________________________________________________
(a)During the nine months ended September 30, 2022, the Company’s income (loss) from construction operations was adversely impacted by $36.0 million ($26.0 million, or $0.51 per diluted share, after tax) due to unfavorable adjustments related to the unforeseen cost of project close-out issues, remediation work, extended project supervision and associated labor inefficiencies on the electrical component of a transportation project in the Northeast in the Specialty Contractors segment, and $34.6 million ($27.3 million, or $0.53 per diluted share, after tax) for a Civil segment mass-transit project in California, which resulted from the successful negotiation of significant lower margin (and lower risk) change orders that increased the project’s overall estimated profit but reduced the project’s percentage of completion and overall margin percentage. The Company’s income (loss) from construction operations was also impacted by a non-cash charge of $25.5 million ($18.3 million, or $0.36 per diluted share, after tax) due to an adverse legal ruling on a dispute related to a completed Civil segment bridge project in New York, an $18.0 million ($13.9 million, or $0.27 per diluted share, after tax) unfavorable adjustment split evenly between the Civil and Building segments due to changes in estimates on the same transportation project in the Northeast mentioned above, a non-cash charge of $17.8 million ($12.8 million, or $0.25 per diluted share, after tax) that increased cost of operations associated with the partial reversal by an appellate court of previously awarded legal damages related to a completed electrical project in New York in the Specialty Contractors segment, a $16.2 million ($11.6 million, or $0.23 per diluted share, after tax) unfavorable non-cash impact related to the settlement of a long-disputed, completed Civil segment project in Maryland, a $14.3 million ($10.2 million, or $0.20 per diluted share, after tax) unfavorable adjustment on a completed Civil segment highway project in the Northeast due to the reversal on appeal of a previously favorable lower-court ruling, and $13.1 million ($9.4 million, or $0.18 per diluted share, after tax) of unfavorable adjustments on a Civil segment mass-transit project in California.
(b)Consists primarily of corporate general and administrative expenses.
(c)Depreciation and amortization is included in income (loss) from construction operations.
(d)During the nine months ended September 30, 2021, the Company recorded a reduction of $20.1 million in cost of operations ($14.6 million, or $0.28 per diluted share, after tax) due to a favorable trial court ruling awarding the Company the recovery of certain costs previously incurred on a completed electrical project in New York in the Specialty Contractors segment. The Company also recognized $18.1 million of additional revenue ($13.0 million, or $0.25 per diluted share, after tax) as a result of favorable adjustments on a Civil segment mass-transit project in California reflecting improved profitability due to the mitigation of certain risks as the project progresses toward completion. The Company’s income from construction operations was also negatively impacted by $14.5 million ($10.5 million, or $0.21 per diluted share, after-tax) due to changes in estimates on an electrical project in New York in the Specialty Contractors segment that included unfavorable adjustments and the negative impact to the period associated with increases to project forecasts due to growth in unapproved change orders (expected to be negotiated in future periods).
Reconciliation of Segment Results to Consolidated Income Before Income Taxes
A reconciliation of segment results to the consolidated income (loss) before income taxes is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2022202120222021
Income (loss) from construction operations$(6,892)$52,093 $(107,353)$170,550 
Other income (expense)397 (464)5,114 1,142 
Interest expense(17,015)(16,694)(49,711)(52,442)
Income (loss) before income taxes$(23,510)$34,935 $(151,950)$119,250 
Total Assets for Reportable Segments
Total assets by segment were as follows:
(in thousands)As of September 30,
2022		As of December 31,
2021
Civil$3,467,173 $3,310,648 
Building976,400 980,989 
Specialty Contractors607,424 631,710 
Corporate and other(a)
(290,023)(198,449)
Total assets$4,760,974 $4,724,898 
____________________________________________________________________________________________________
(a)Consists principally of cash, equipment, tax-related assets and insurance-related assets, offset by the elimination of assets related to intersegment revenue.