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Revenue from Contracts with Customers (Tables)
9 Months Ended
Sep. 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 nine months ended September 30, 2023 and 2022, as summarized in the following table (in thousands):
 For the three months ended
September 30,
For the nine months ended
September 30,
 2023202220232022
United States electrical construction and facilities services$2,635 $10,549 $12,219 $26,460 
United States mechanical construction and facilities services7,933 1,273 13,416 8,443 
United States building services— — 2,977 — 
Total impact$10,568 $11,822 $28,612 $34,903 
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 nine months ended September 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 September 30,
2023% of
Total
2022% of
Total
United States electrical construction and facilities services:
Network and communications market sector$236,454 34 %$209,265 33 %
Commercial market sector104,270 15 %106,058 17 %
Manufacturing and industrial market sector97,788 14 %78,562 12 %
Healthcare market sector62,126 %43,911 %
High-tech manufacturing market sector33,482 %20,132 %
Institutional market sector37,916 %46,344 %
Transportation market sector43,287 %40,525 %
Water and wastewater market sector6,327 %5,466 %
Hospitality and entertainment market sector16,708 %8,598 %
Short duration projects (1)
43,481 %58,637 %
Service work15,927 %16,829 %
697,766 634,327 
Less intersegment revenues(360)(944)
Total segment revenues$697,406 $633,383 
 ________
(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 September 30,
2023% of
Total
2022% of
Total
United States mechanical construction and facilities services:
Network and communications market sector$102,630 %$87,070 %
Commercial market sector283,659 21 %271,908 25 %
Manufacturing and industrial market sector178,123 13 %156,524 14 %
Healthcare market sector123,025 %120,185 11 %
High-tech manufacturing market sector255,229 19 %81,970 %
Institutional market sector89,215 %99,066 %
Transportation market sector10,168 %15,494 %
Water and wastewater market sector65,219 %66,667 %
Hospitality and entertainment market sector14,716 %9,910 %
Short duration projects (1)
81,851 %76,073 %
Service work128,912 10 %127,033 11 %
1,332,747 1,111,900 
Less intersegment revenues(3,147)(3,245)
Total segment revenues$1,329,600 $1,108,655 
 ________
(1)Represents those projects which generally are completed within three months or less.
For the three months ended September 30,
2023% of
Total
2022% of
Total
United States building services:
Mechanical services$542,371 66 %$471,134 65 %
Commercial site-based services222,499 27 %199,957 28 %
Government site-based services52,848 %48,292 %
Total segment revenues$817,718 $719,383 
For the three months ended September 30,
2023% of
Total
2022% of
Total
United States industrial services:
Field services$214,341 85 %$213,866 87 %
Shop services37,807 15 %33,373 13 %
Total segment revenues$252,148 $247,239 
Total United States operations$3,096,872 $2,708,660 
For the three months ended September 30,
2023% of
Total
2022% of
Total
United Kingdom building services:
Service work$54,286 49 %$51,762 44 %
Project work56,440 51 %65,939 56 %
Total segment revenues$110,726 $117,701 
Total operations$3,207,598 $2,826,361 
NOTE 3 - Revenue from Contracts with Customers (Continued)
For the nine months ended September 30,
2023% of
Total
2022% of
Total
United States electrical construction and facilities services:
Network and communications market sector$665,493 33 %$534,130 31 %
Commercial market sector295,188 15 %301,908 17 %
Manufacturing and industrial market sector278,912 14 %210,331 12 %
Healthcare market sector182,442 %119,259 %
High-tech manufacturing market sector102,075 %62,956 %
Institutional market sector112,577 %115,799 %
Transportation market sector118,436 %128,047 %
Water and wastewater market sector18,388 %15,962 %
Hospitality and entertainment market sector56,510 %19,892 %
Short duration projects (1)
141,901 %167,553 10 %
Service work50,080 %47,253 %
2,022,002 1,723,090 
Less intersegment revenues(1,683)(3,565)
Total segment revenues$2,020,319 $1,719,525 
________
(1)Represents those projects which generally are completed within three months or less.

For the nine months ended September 30,
2023% of
Total
2022% of
Total
United States mechanical construction and facilities services:
Network and communications market sector$289,085 %$203,347 %
Commercial market sector828,809 23 %799,729 25 %
Manufacturing and industrial market sector485,809 13 %461,385 15 %
Healthcare market sector353,595 10 %367,002 12 %
High-tech manufacturing market sector549,678 15 %211,071 %
Institutional market sector224,889 %251,715 %
Transportation market sector31,615 %47,793 %
Water and wastewater market sector201,167 %196,157 %
Hospitality and entertainment market sector38,324 %34,108 %
Short duration projects (1)
237,246 %254,102 %
Service work368,378 10 %340,682 11 %
3,608,595 3,167,091 
Less intersegment revenues(6,324)(8,143)
Total segment revenues$3,602,271 $3,158,948 
 ________
(1)Represents those projects which generally are completed within three months or less.
NOTE 3 - Revenue from Contracts with Customers (Continued)
For the nine months ended September 30,
2023% of
Total
2022% of
Total
United States building services:
Mechanical services$1,519,410 65 %$1,300,555 64 %
Commercial site-based services639,193 28 %596,589 29 %
Government site-based services159,502 %144,411 %
Total segment revenues$2,318,105 $2,041,555 
For the nine months ended September 30,
2023% of
Total
2022% of
Total
United States industrial services:
Field services$751,062 86 %$732,826 87 %
Shop services124,252 14 %109,698 13 %
Total segment revenues$875,314 $842,524 
Total United States operations$8,816,009 $7,762,552 
For the nine months ended September 30,
2023% of
Total
2022% of
Total
United Kingdom building services:
Service work$157,631 48 %$170,840 47 %
Project work170,012 52 %192,906 53 %
Total segment revenues$327,643 $363,746 
Total operations$9,143,652 $8,126,298 
Accounts Receivable, Allowance for Credit Losses
The change in the allowance for credit losses for the nine months ended September 30, 2023 was as follows (in thousands):
Balance at December 31, 2022$22,382 
Provision for credit losses5,256 
Net amounts written off against the allowance, net of recoveries
(5,994)
Balance at September 30, 2023$21,644 
Contract Assets and Contract Liabilities
Net contract liabilities in the accompanying Consolidated Balance Sheets consisted of the following as of September 30, 2023 and December 31, 2022 (in thousands):
September 30,
2023
December 31, 2022
Contract assets, current$308,868 $273,176 
Contract assets, non-current— — 
Contract liabilities, current(1,489,324)(1,098,263)
Contract liabilities, non-current(2,060)(2,273)
Net contract liabilities$(1,182,516)$(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 September 30, 2023 (in thousands, except for percentages):
September 30,
2023
% of Total
Remaining performance obligations:
United States electrical construction and facilities services$2,158,104 25 %
United States mechanical construction and facilities services4,875,551 56 %
United States building services1,313,779 15 %
United States industrial services133,894 %
Total United States operations8,481,328 98 %
United Kingdom building services154,115 %
Total operations$8,635,443 100 %
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$1,743,345 $414,759 
United States mechanical construction and facilities services4,021,465 854,086 
United States building services1,166,368 147,411 
United States industrial services133,894 — 
Total United States operations7,065,072 1,416,256 
United Kingdom building services107,125 46,990 
Total operations$7,172,197 $1,463,246