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Investments in and Advances to Joint Ventures | 3 Months Ended
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Mar. 31, 2023
Equity Method Investments and Joint Ventures [Abstract] |
Investments in and Advances to Joint Ventures | 14. Investments in and Advances to Joint Ventures The Company participates in joint ventures to bid, negotiate and complete specific projects. The Company is required to consolidate these joint ventures if it holds the majority voting interest or if the Company meets the criteria under the consolidation model, as described below. The Company performs an analysis to determine whether its variable interests give the Company a controlling financial interest in a Variable Interest Entity (“VIE”) for which the Company is the primary beneficiary and should, therefore, be consolidated. Such analysis requires the Company to assess whether it has the power to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company analyzed all of its joint ventures and classified them into two groups: (1) joint ventures that must be consolidated because they are either not VIEs and the Company holds the majority voting interest, or because they are VIEs and the Company is the primary beneficiary; and (2) joint ventures that do not need to be consolidated because they are either not VIEs and the Company holds a minority voting interest, or because they are VIEs and the Company is not the primary beneficiary. Many of the Company’s joint venture agreements provide for capital calls to fund operations, as necessary; however, such funding is infrequent and is not anticipated to be material. Letters of credit outstanding described in “Note 10 – Debt and Credit Facilities” that relate to project ventures are $105.9 million and $106.8 million at March 31, 2023 and December 31, 2022. In the table below, aggregated financial information relating to the Company’s joint ventures is provided because their nature, risk and reward characteristics are similar. None of the Company’s current joint ventures that meet the characteristics of a VIE are individually significant to the consolidated financial statements. Consolidated Joint Ventures The following represents financial information for consolidated joint ventures included in the consolidated financial statements (in thousands):
|  | March 31, 2023 |  |  | December 31, 2022 |
Current assets |  | $ | 331,742 |  |  | $ | 289,837 |
Noncurrent assets |  |  | 10,693 |  |  |  | 9,961 |
Total assets |  |  | 342,435 |  |  |  | 299,798 |
Current liabilities |  |  | 216,682 |  |  |  | 194,701 |
Noncurrent liabilities |  |  | 3,871 |  |  |  | 3,763 |
Total liabilities |  |  | 220,553 |  |  |  | 198,464 |
Total joint venture equity |  | $ | 121,882 |  |  | $ | 101,334 |
|  | Three Months Ended |
|  | March 31, 2023 |  |  | March 31, 2022 |
Revenue |  | $ | 161,484 |  |  | $ | 95,534 |
Costs |  |  | 141,598 |  |  |  | 88,842 |
Net income |  | $ | 19,886 |  |  | $ | 6,692 |
Net income attributable to noncontrolling interests |  | $ | 9,723 |  |  | $ | 3,176 |
The assets of the consolidated joint ventures are restricted for use only by the particular joint venture and are not available for the Company’s general operations. Unconsolidated Joint Ventures The Company accounts for its unconsolidated joint ventures using the equity method of accounting. Under this method, the Company recognizes its proportionate share of the net earnings of these joint ventures as “Equity in (losses) earnings of unconsolidated joint ventures” in the consolidated statements of income. The Company’s maximum exposure to loss as a result of its investments in unconsolidated joint ventures is typically limited to the aggregate of the carrying value of the investment and future funding commitments. The following represents the financial information of the Company’s unconsolidated joint ventures as presented in their unaudited financial statements (in thousands):
|  | March 31, 2023 |  |  | December 31, 2022 |
Current assets |  | $ | 1,291,910 |  |  | $ | 1,610,246 |
Noncurrent assets |  |  | 493,501 |  |  |  | 491,658 |
Total assets |  |  | 1,785,411 |  |  |  | 2,101,904 |
Current liabilities |  |  | 848,105 |  |  |  | 1,255,297 |
Noncurrent liabilities |  |  | 540,967 |  |  |  | 468,056 |
Total liabilities |  |  | 1,389,072 |  |  |  | 1,723,353 |
Total joint venture equity |  | $ | 396,339 |  |  | $ | 378,551 |
Investments in and advances to unconsolidated joint ventures |  | $ | 107,416 |  |  | $ | 107,425 |
|  | Three Months Ended |
|  | March 31, 2023 |  |  | March 31, 2022 |
Revenue |  | $ | 349,157 |  |  | $ | 384,581 |
Costs |  |  | 359,395 |  |  |  | 373,286 |
Net income |  | $ | (10,238 | ) |  | $ | 11,295 |
Equity in (losses) earnings of unconsolidated joint ventures |  | $ | (5,840 | ) |  | $ | 5,598 |
The Company had net contributions to its unconsolidated joint ventures for the three months ended March 31, 2023 of $4.8 million and received net distributions from its unconsolidated joint ventures for the three months ended March 31, 2022 of $2.8 million. For the three months ended March 31, 2023, the Company recorded a $6.8 million adjustment on an unconsolidated joint venture in the Critical Infrastructure segment from lower margin change orders resulting in profits being delayed to future periods. For the three months ended March 31, 2023, this adjustment decreased operating and net income by $6.8 million and $5.1 million, respectively, and decreased diluted earnings per share by $0.04.

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- References No definition available. + Details
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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
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