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Business Segments (Tables)
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Schedule of 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, 2023 and 2022:
Reportable Segments
(in thousands)CivilBuildingSpecialty
Contractors		TotalCorporateConsolidated
Total
Three Months Ended September 30, 2023
Total revenue$543,776 $368,244 $174,933 $1,086,953 $— $1,086,953 
Elimination of intersegment revenue(23,282)(2,795)(171)(26,248)— (26,248)
Revenue from external customers$520,494 $365,449 $174,762 $1,060,705 $— $1,060,705 
Income (loss) from construction operations$46,889 $123 $(38,429)$8,583 
(a)
$(21,149)
(b)
$(12,566)
Capital expenditures$11,941 $241 $391 $12,573 $2,394 $14,967 
Depreciation and amortization(c)
$7,698 $743 $615 $9,056 $2,175 $11,231 
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 
(d)
$(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 
____________________________________________________________________________________________________
(a)During the three months ended September 30, 2023, the Company’s income (loss) from construction operations was adversely impacted by $16.9 million ($12.3 million, or $0.24 per diluted share, after tax) of unfavorable non-cash adjustments due to changes in estimates on the Specialty Contractors segment’s electrical and mechanical scope of a transportation project in the Northeast associated with changes in the expected recovery on certain unapproved change orders resulting from ongoing negotiations, $14.0 million ($10.9 million, or $0.21 per diluted share, after tax) of unfavorable adjustments on the same transportation project in the Northeast, split evenly between the Civil and Building segments, primarily due to the settlement of certain change orders, changes in estimates due to recent negotiations and incremental cost incurred during project closeout, and a $9.4 million ($6.8 million, or $0.13 per diluted share, after tax) unfavorable adjustment due to ongoing negotiations and an anticipated settlement on a completed Specialty Contractors segment mass-transit project in California. During the third quarter of 2023, the Company reached a settlement that impacted multiple components of a Civil segment mass-transit project in California, which included the resolution of certain ongoing disputes and increased the expected profit from work to be performed in the future. The settlement resulted in an unfavorable non-cash adjustment of $23.2 million ($16.8 million, or $0.32 per diluted share, after tax) to one component of the project that is nearing completion, partially offset by a favorable adjustment of $8.8 million ($7.0 million, or $0.13 per diluted share, after tax) on the other component of the project that has substantial scope of work remaining. As a result of the settlement, the net unfavorable impact to the period from these two adjustments is expected to be mitigated by the increased profit generated from future work on the project.
(b)Consists primarily of corporate general and administrative expenses.
(c)Depreciation and amortization is included in income (loss) from construction operations.
(d)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.
Reportable Segments
(in thousands)CivilBuildingSpecialty
Contractors		TotalCorporateConsolidated
Total
Nine Months Ended September 30, 2023
Total revenue$1,477,553 $919,468 $508,004 $2,905,025 $— $2,905,025 
Elimination of intersegment revenue(53,066)6,976 (179)(46,269)— (46,269)
Revenue from external customers$1,424,487 $926,444 $507,825 $2,858,756 $— $2,858,756 
Income (loss) from construction operations$170,308 $(83,917)$(120,709)$(34,318)
(a)
$(57,805)
(b)
$(92,123)
Capital expenditures$36,649 $3,716 $1,091 $41,456 $4,134 $45,590 
Depreciation and amortization(c)
$21,753 $1,655 $1,856 $25,264 $6,721 $31,985 
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)
(d)
$(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 
____________________________________________________________________________________________________
(a)During the nine months ended September 30, 2023, the Company’s income (loss) from construction operations was impacted by an adverse legal ruling on a completed mixed-use project in New York, which resulted in a non-cash, pre-tax charge of $83.6 million ($60.1 million, or $1.16 per diluted share, after-tax) in the first quarter, of which $72.2 million impacted the Building segment and $11.4 million impacted the Specialty Contractors segment; $57.0 million ($41.4 million, or $0.80 per diluted share, after tax) of unfavorable non-cash adjustments due to changes in estimates on the Specialty Contractors segment’s electrical and mechanical scope of a transportation project in the Northeast associated with changes in the expected recovery on certain unapproved change orders resulting from ongoing negotiations; $27.5 million ($21.4 million, or $0.41 per diluted share, after tax) of unfavorable adjustments on the same transportation project in the Northeast, split evenly between the Civil and Building segments, primarily due to the settlement of certain change orders, changes in estimates due to recent negotiations and incremental cost incurred during project closeout; net favorable adjustments of $25.6 million ($20.3 million, or $0.39 per diluted share, after tax) for a Civil segment mass-transit project in California that resulted from changes in estimates due to improved performance; a non-cash charge of $25.1 million ($18.2 million, or $0.35 per diluted share, after tax) in the second quarter of 2023 that resulted from an adverse legal ruling on a Specialty Contractors segment educational facilities project in New York; and a $9.4 million ($6.8 million, or $0.13 per diluted share, after tax) unfavorable adjustment due to ongoing negotiations and an anticipated settlement on a completed Specialty Contractors segment mass-transit project in California. During the third quarter of 2023, the Company reached a settlement that impacted multiple components of a Civil segment mass-transit project in California, which included the resolution of certain ongoing disputes and increased the expected profit from work to be performed in the future. The settlement resulted in an unfavorable non-cash adjustment of $23.2 million ($16.8 million, or $0.32 per diluted share, after tax) to one component of the project that is nearing completion, partially offset by a favorable adjustment of $8.8 million ($7.0 million, or $0.14 per diluted share, after tax) on the other component of the project that has substantial scope of work remaining. As a result of the settlement, the net unfavorable impact to the period from these two adjustments is expected to be mitigated by the increased profit generated from future work on the project.
(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, 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 $0.18 per diluted share, after tax) of unfavorable adjustments on a Civil segment mass-transit project in California.
Schedule of Reconciliation of Segment Results to Consolidated Income (Loss) Before Income Taxes
A reconciliation of segment results to the consolidated loss before income taxes is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Loss from construction operations$(12,566)$(6,892)$(92,123)$(107,353)
Other income, net2,967 397 12,442 5,114 
Interest expense(20,313)(17,015)(63,842)(49,711)
Loss before income taxes
$(29,912)$(23,510)$(143,523)$(151,950)
Schedule of Total Assets for Reportable Segments
Total assets by segment were as follows:
(in thousands)As of September 30,
2023		As of December 31,
2022
Civil$3,482,496 $3,402,934 
Building935,742 898,816 
Specialty Contractors331,761 483,535 
Corporate and other(a)
(264,272)(242,485)
Total assets$4,485,727 $4,542,800 
____________________________________________________________________________________________________
(a)Consists principally of cash, equipment, tax-related assets and insurance-related assets, offset by the elimination of assets related to intersegment revenue.