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Revenue from Contracts with Customers (Tables)
6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Cumulative Catch-Up Adjustment
Based on an evaluation of individual projects that had revisions to total estimated costs or anticipated contract value, which resulted in a reduction of profitability in excess of $1.0 million, our operating results were negatively impacted during the three and six months ended June 30, 2023 and 2022, as summarized in the following table (in thousands):
 For the three months ended
June 30,
For the six months ended
June 30,
 2023202220232022
United States electrical construction and facilities services$2,616 $7,721 $8,345 $14,261 
United States mechanical construction and facilities services— 4,110 2,686 9,533 
United States building services1,084 — 1,544 — 
Total impact$3,700 $11,831 $12,575 $23,794 
Disaggregation of Revenues
The following tables provide further disaggregation of our revenues, by categories we use to evaluate our financial performance within each of our reportable segments, for the three and six months ended June 30, 2023 and 2022 (in thousands, except for percentages). Refer to Note 14 - Segment Information of the notes to consolidated financial statements for additional information on how we disaggregate our revenues by reportable segment.
Due to continued growth in certain of our end markets, beginning with the first quarter of 2023, we have expanded the market sectors included in the disclosure for each of our United States construction segments, as shown below. All prior period disclosures have been adjusted to additionally reflect these changes.
For the three months ended June 30,
2023% of
Total
2022% of
Total
United States electrical construction and facilities services:
Network and communications market sector$215,288 32 %$179,491 32 %
Commercial market sector93,820 14 %94,009 16 %
Manufacturing and industrial market sector95,883 14 %65,304 12 %
Healthcare market sector64,813 %43,278 %
High-tech manufacturing market sector38,039 %22,955 %
Institutional market sector37,250 %37,689 %
Transportation market sector41,247 %42,440 %
Water and wastewater market sector4,603 %5,184 %
Hospitality and entertainment market sector19,750 %5,440 %
Short duration projects (1)
50,740 %52,868 %
Service work17,276 %17,095 %
678,709 565,753 
Less intersegment revenues(542)(1,641)
Total segment revenues$678,167 $564,112 
 ________
(1)Represents those projects which generally are completed within three months or less.
NOTE 3 - Revenue from Contracts with Customers (Continued)
For the three months ended June 30,
2023% of
Total
2022% of
Total
United States mechanical construction and facilities services:
Network and communications market sector$87,034 %$60,643 %
Commercial market sector289,304 24 %266,321 25 %
Manufacturing and industrial market sector166,051 14 %155,290 15 %
Healthcare market sector117,842 10 %126,985 12 %
High-tech manufacturing market sector177,653 15 %71,528 %
Institutional market sector71,626 %86,727 %
Transportation market sector9,229 %16,246 %
Water and wastewater market sector67,286 %67,746 %
Hospitality and entertainment market sector13,531 %11,418 %
Short duration projects (1)
73,978 %84,470 %
Service work122,278 10 %112,905 11 %
1,195,812 1,060,279 
Less intersegment revenues(1,699)(2,630)
Total segment revenues$1,194,113 $1,057,649 
 ________
(1)Represents those projects which generally are completed within three months or less.
For the three months ended June 30,
2023% of
Total
2022% of
Total
United States building services:
Mechanical services$514,505 66 %$448,024 65 %
Commercial site-based services207,323 27 %193,082 28 %
Government site-based services53,184 %45,439 %
Total segment revenues$775,012 $686,545 
For the three months ended June 30,
2023% of
Total
2022% of
Total
United States industrial services:
Field services$250,877 86 %$247,542 87 %
Shop services41,406 14 %36,992 13 %
Total segment revenues$292,283 $284,534 
Total United States operations$2,939,575 $2,592,840 
For the three months ended June 30,
2023% of
Total
2022% of
Total
United Kingdom building services:
Service work$51,682 49 %$54,261 47 %
Project work54,365 51 %60,287 53 %
Total segment revenues$106,047 $114,548 
Total operations$3,045,622 $2,707,388 
NOTE 3 - Revenue from Contracts with Customers (Continued)
For the six months ended June 30,
2023% of
Total
2022% of
Total
United States electrical construction and facilities services:
Network and communications market sector$429,039 32 %$324,865 30 %
Commercial market sector190,918 14 %195,850 18 %
Manufacturing and industrial market sector181,124 14 %131,769 12 %
Healthcare market sector120,316 %75,348 %
High-tech manufacturing market sector68,593 %42,824 %
Institutional market sector74,661 %69,455 %
Transportation market sector75,149 %87,522 %
Water and wastewater market sector12,061 %10,496 %
Hospitality and entertainment market sector39,802 %11,294 %
Short duration projects (1)
98,420 %108,916 10 %
Service work34,153 %30,424 %
1,324,236 1,088,763 
Less intersegment revenues(1,323)(2,621)
Total segment revenues$1,322,913 $1,086,142 
________
(1)Represents those projects which generally are completed within three months or less.

For the six months ended June 30,
2023% of
Total
2022% of
Total
United States mechanical construction and facilities services:
Network and communications market sector$186,455 %$116,277 %
Commercial market sector545,150 24 %527,821 26 %
Manufacturing and industrial market sector307,686 13 %304,861 15 %
Healthcare market sector230,570 10 %246,817 12 %
High-tech manufacturing market sector294,449 13 %129,101 %
Institutional market sector135,674 %152,649 %
Transportation market sector21,447 %32,299 %
Water and wastewater market sector135,948 %129,490 %
Hospitality and entertainment market sector23,608 %24,198 %
Short duration projects (1)
155,395 %178,029 %
Service work239,466 11 %213,649 10 %
2,275,848 2,055,191 
Less intersegment revenues(3,177)(4,898)
Total segment revenues$2,272,671 $2,050,293 
 ________
(1)Represents those projects which generally are completed within three months or less.
NOTE 3 - Revenue from Contracts with Customers (Continued)
For the six months ended June 30,
2023% of
Total
2022% of
Total
United States building services:
Mechanical services$977,039 65 %$829,421 63 %
Commercial site-based services416,694 28 %396,632 30 %
Government site-based services106,654 %96,119 %
Total segment revenues$1,500,387 $1,322,172 
For the six months ended June 30,
2023% of
Total
2022% of
Total
United States industrial services:
Field services$536,721 86 %$518,960 87 %
Shop services86,445 14 %76,325 13 %
Total segment revenues$623,166 $595,285 
Total United States operations$5,719,137 $5,053,892 
For the six months ended June 30,
2023% of
Total
2022% of
Total
United Kingdom building services:
Service work$103,345 48 %$119,078 48 %
Project work113,572 52 %126,967 52 %
Total segment revenues$216,917 $246,045 
Total operations$5,936,054 $5,299,937 
Accounts Receivable, Allowance for Credit Losses The change in the allowance for credit losses for the six months ended June 30, 2023 was as follows (in thousands):
Balance at December 31, 2022$22,382 
Provision for credit losses3,115 
Net amounts written off against the allowance(4,790)
Balance at June 30, 2023$20,707 
Contract Assets and Contract Liabilities
Net contract liabilities in the accompanying Consolidated Balance Sheets consisted of the following as of June 30, 2023 and December 31, 2022 (in thousands):
June 30,
2023
December 31, 2022
Contract assets, current$289,368 $273,176 
Contract assets, non-current— — 
Contract liabilities, current(1,357,740)(1,098,263)
Contract liabilities, non-current(2,120)(2,273)
Net contract liabilities$(1,070,492)$(827,360)
Remaining Performance Obligations
The following table presents the transaction price allocated to remaining unsatisfied performance obligations (“remaining performance obligations”) for each of our reportable segments and their respective percentages of total remaining performance obligations as of June 30, 2023 (in thousands, except for percentages):
June 30,
2023
% of Total
Remaining performance obligations:
United States electrical construction and facilities services$2,180,133 26 %
United States mechanical construction and facilities services4,552,211 55 %
United States building services1,255,165 15 %
United States industrial services144,731 %
Total United States operations8,132,240 98 %
United Kingdom building services153,919 %
Total operations$8,286,159 100 %
Remaining Performance Obligations, Expected Timing of Satisfaction
Refer to the table below for additional information regarding our remaining performance obligations, including an estimate of when we expect to recognize such remaining performance obligations as revenue (in thousands):
Within one yearGreater than one year
Remaining performance obligations:
United States electrical construction and facilities services$1,688,250 $491,883 
United States mechanical construction and facilities services3,761,074 791,137 
United States building services1,107,281 147,884 
United States industrial services143,228 1,503 
Total United States operations6,699,833 1,432,407 
United Kingdom building services104,658 49,261 
Total operations$6,804,491 $1,481,668