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Investments in and Advances to Joint Ventures | 9 Months Ended
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Sep. 30, 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 $149.9 million and $106.8 million at September 30, 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):
|  | September 30, 2023 |  |  | December 31, 2022 |
Current assets |  | $ | 418,854 |  |  | $ | 289,837 |
Noncurrent assets |  |  | 11,637 |  |  |  | 9,961 |
Total assets |  |  | 430,491 |  |  |  | 299,798 |
Current liabilities |  |  | 278,168 |  |  |  | 194,701 |
Noncurrent liabilities |  |  | 3,504 |  |  |  | 3,763 |
Total liabilities |  |  | 281,672 |  |  |  | 198,464 |
Total joint venture equity |  | $ | 148,819 |  |  | $ | 101,334 |
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, 2023 |  |  | September 30, 2022 |  |  | September 30, 2023 |  |  | September 30, 2022 |
Revenue |  | $ | 185,602 |  |  | $ | 130,344 |  |  | $ | 514,339 |  |  | $ | 333,967 |
Costs |  |  | 160,423 |  |  |  | 101,882 |  |  |  | 445,829 |  |  |  | 289,485 |
Net income |  | $ | 25,179 |  |  | $ | 28,462 |  |  | $ | 68,510 |  |  | $ | 44,482 |
Net income attributable to noncontrolling interests |  | $ | 12,364 |  |  | $ | 14,024 |  |  | $ | 33,617 |  |  | $ | 21,685 |
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):
|  | September 30, 2023 |  |  | December 31, 2022 |
Current assets |  | $ | 1,513,825 |  |  | $ | 1,610,246 |
Noncurrent assets |  |  | 481,708 |  |  |  | 491,658 |
Total assets |  |  | 1,995,533 |  |  |  | 2,101,904 |
Current liabilities |  |  | 960,276 |  |  |  | 1,255,297 |
Noncurrent liabilities |  |  | 503,705 |  |  |  | 468,056 |
Total liabilities |  |  | 1,463,981 |  |  |  | 1,723,353 |
Total joint venture equity |  | $ | 531,552 |  |  | $ | 378,551 |
Investments in and advances to unconsolidated joint ventures |  | $ | 164,858 |  |  | $ | 107,425 |
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, 2023 |  |  | September 30, 2022 |  |  | September 30, 2023 |  |  | September 30, 2022 |
Revenue |  | $ | 634,937 |  |  | $ | 782,880 |  |  | $ | 1,514,561 |  |  | $ | 1,762,420 |
Costs |  |  | 581,041 |  |  |  | 774,030 |  |  |  | 1,474,991 |  |  |  | 1,711,555 |
Net income |  | $ | 53,896 |  |  | $ | 8,850 |  |  | $ | 39,570 |  |  | $ | 50,865 |
Equity in (losses) earnings of unconsolidated joint ventures |  | $ | 10,262 |  |  | $ | (974 | ) |  | $ | 4,497 |  |  | $ | 10,237 |
The Company had net contributions to its unconsolidated joint ventures for the three and nine months ended September 30, 2023 of $36.1 million and $50.8 million, respectively and received net distributions from its unconsolidated joint ventures for the three and nine months ended September 30, 2022 of $13.2 million and $21.4 million, respectively. For the three ended September 30, 2023, the Company recorded adjustments to equity in earnings of unconsolidated joint ventures of $5.1 million and for the nine months ended September 30, 2023 the Company recorded adjustments to equity in losses of unconsolidated joint ventures of $12.4 million on two unconsolidated joint ventures in the Critical Infrastructure segment, one from lower margin change orders in the first quarter offset in the current quarter by higher margin change orders and the other from write-offs in each of the three quarters ended September 30, 2023. For the three months ended September 30, 2023, these adjustments increased operating income by $5.1 million, net income by $3.8 million and diluted earnings per share of $0.03 and for the nine months ended September 30, 2023 decreased operating income by $12.4 million, net income by $9.2 million and diluted earnings per share by $0.08.

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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 -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
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