XML 38 R27.htm IDEA: XBRL DOCUMENT
v3.24.2

Segment Information | 6 Months Ended
--- | ---
Jun. 30, 2024
Segment Reporting [Abstract] |
Segment Information | 18. Segment Information The Company operates in two reportable segments: Federal Solutions and Critical Infrastructure. The Federal Solutions segment provides advanced technical solutions to the U.S. government, delivering timely, cost-effective hardware, software and services for mission-critical projects. The segment provides advanced technologies, supporting national security missions in cybersecurity, missile defense, and military facility modernization, logistics support, hazardous material remediation and engineering services. The Critical Infrastructure segment provides integrated engineering and management services for complex physical and digital infrastructure around the globe. The Critical Infrastructure segment is a technology innovator focused on next generation digital systems and complex structures. Industry leading capabilities in engineering and project management allow the Company to deliver significant value to customers by employing cutting-edge technologies, improving timelines and reducing costs. The Company defines its reportable segments based on the way the chief operating decision maker (“CODM”), its Chief Executive Officer, evaluates the performance of each segment and manages the operations of the Company for purposes of allocating resources among the segments. The CODM evaluates segment operating performance using segment Revenue and segment Adjusted EBITDA attributable to Parsons Corporation. The following table summarizes business segment revenue for the periods presented (in thousands):
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2024 |  |  | June 30, 2023 |  |  | June 30, 2024 |  |  | June 30, 2023 |
Federal Solutions revenue |  | $ | 988,603 |  |  | $ | 762,797 |  |  | $ | 1,898,211 |  |  | $ | 1,397,343 |
Critical Infrastructure revenue |  |  | 681,864 |  |  |  | 593,689 |  |  |  | 1,307,932 |  |  |  | 1,132,609 |
Total revenue |  | $ | 1,670,467 |  |  | $ | 1,356,486 |  |  | $ | 3,206,143 |  |  | $ | 2,529,952 |
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2024 |  |  | June 30, 2023 |  |  | June 30, 2024 |  |  | June 30, 2023 |
Equity in (losses) earnings of unconsolidated joint ventures: |  |  |  |  |  |  |  |  |  |  |  |
Federal Solutions |  | $ | 1,466 |  |  | $ | 955 |  |  | $ | 997 |  |  | $ | 2,067 |
Critical Infrastructure |  |  | (18,303 | ) |  |  | (880 | ) |  |  | (19,894 | ) |  | $ | (7,832 | )
Total equity in (losses) earnings of unconsolidated joint ventures |  | $ | (16,837 | ) |  | $ | 75 |  |  | $ | (18,897 | ) |  | $ | (5,765 | )
The Company defines Adjusted EBITDA attributable to Parsons Corporation as Adjusted EBITDA excluding Adjusted EBITDA attributable to noncontrolling interests. The Company defines Adjusted EBITDA as net income (loss) attributable to Parsons Corporation, adjusted to include net income (loss) attributable to noncontrolling interests and to exclude interest expense (net of interest income), provision for income taxes, depreciation and amortization and certain other items that are not considered in the evaluation of ongoing operating performance. These other items include net income (loss) attributable to noncontrolling interests, asset impairment charges, equity-based compensation, income and expense recognized on litigation matters, expenses incurred in connection with acquisitions and other non-recurring transaction costs and expenses related to our prior restructuring. The following table reconciles business segment Adjusted EBITDA attributable to Parsons Corporation to Net Income attributable to Parsons Corporation for the periods presented (in thousands):
|  | Three Months Ended |  |  | Six Months Ended |
Adjusted EBITDA attributable to Parsons Corporation |  | June 30, 2024 |  |  | June 30, 2023 |  |  | June 30, 2024 |  |  | June 30, 2023 |
Federal Solutions |  | $ | 102,781 |  |  | $ | 85,640 |  |  | $ | 195,322 |  |  | $ | 141,788 |
Critical Infrastructure |  |  | 35,612 |  |  |  | 20,936 |  |  |  | 68,575 |  |  |  | 45,293 |
Adjusted EBITDA attributable to Parsons Corporation |  |  | 138,393 |  |  |  | 106,576 |  |  |  | 263,897 |  |  |  | 187,081 |
Adjusted EBITDA attributable to noncontrolling interests |  |  | 11,837 |  |  |  | 11,730 |  |  |  | 27,426 |  |  |  | 21,616 |
Depreciation and amortization |  |  | (24,440 | ) |  |  | (28,689 | ) |  |  | (48,971 | ) |  |  | (57,048 | )
Interest expense, net |  |  | (9,183 | ) |  |  | (6,993 | ) |  |  | (21,029 | ) |  |  | (12,658 | )
Income tax benefit (expense) |  |  | (22,415 | ) |  |  | (15,223 | ) |  |  | 9,819 |  |  |  | (26,726 | )
Equity-based compensation expense |  |  | (10,647 | ) |  |  | (9,314 | ) |  |  | (23,303 | ) |  |  | (16,017 | )
Loss on extinguishment of debt |  |  | - |  |  |  | - |  |  |  | (211,018 | ) |  |  | - |
Transaction-related costs (a) |  |  | (2,302 | ) |  |  | (1,917 | ) |  |  | (5,188 | ) |  |  | (3,535 | )
Restructuring expense (b) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (546 | )
Other (c) |  |  | (524 | ) |  |  | (1,399 | ) |  |  | (3,026 | ) |  |  | (2,120 | )
Net (loss) income including noncontrolling interests |  |  | 80,719 |  |  |  | 54,771 |  |  |  | (11,393 | ) |  |  | 90,047 |
Net income attributable to noncontrolling interests |  |  | 11,547 |  |  |  | 11,530 |  |  |  | 26,790 |  |  |  | 21,253 |
Net (loss) income attributable to Parsons Corporation |  | $ | 69,172 |  |  | $ | 43,241 |  |  | $ | (38,183 | ) |  | $ | 68,794 |
(a) Reflects costs incurred in connection with acquisitions and other non-recurring transaction costs, primarily fees paid for professional services and employee retention. (b) Reflects costs associated with corporate restructuring initiatives. (c) Includes a combination of gain/loss related to sale of fixed assets, software implementation costs, and other individually insignificant items that are non-recurring in nature. Asset information by segment is not a key measure of performance used by the CODM. The following tables present revenues and property and equipment, net by geographic area (in thousands):
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2024 |  |  | June 30, 2023 |  |  | June 30, 2024 |  |  | June 30, 2023 |
Revenue |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 1,419,327 |  |  | $ | 1,136,290 |  |  | $ | 2,691,577 |  |  | $ | 2,085,005 |
Middle East |  |  | 246,063 |  |  |  | 219,253 |  |  |  | 504,984 |  |  |  | 436,651 |
Rest of World |  |  | 5,077 |  |  |  | 943 |  |  |  | 9,582 |  |  |  | 8,296 |
Total Revenue |  | $ | 1,670,467 |  |  | $ | 1,356,486 |  |  | $ | 3,206,143 |  |  | $ | 2,529,952 |
The geographic location of revenue is determined by the location of the customer.
|  | June 30, 2024 |  |  | December 31, 2023 |
Property and Equipment, Net |  |  |  |  |  |
North America |  | $ | 89,506 |  |  | $ | 91,766 |
Middle East |  |  | 8,711 |  |  |  | 7,191 |
Total Property and Equipment, Net |  | $ | 98,217 |  |  | $ | 98,957 |
North America includes revenue in the United States for the three months ended June 30, 2024 and June 30, 2023 of $1.3 billion and $1.0 billion, respectively and for the six months ended June 30, 2024 and June 30, 2023 of $2.5 billion and $1.9 billion, respectively. North America property and equipment, net includes $81.7 million and $83.9 million of property and equipment, net in the United States at June 30, 2024 and December 31, 2023, respectively. The following table presents revenues by business units (in thousands):
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2024 |  |  | June 30, 2023 |  |  | June 30, 2024 |  |  | June 30, 2023 |
Revenue |  |  |  |  |  |  |  |  |  |  |  |
Defense and Intelligence |  | $ | 420,396 |  |  | $ | 381,328 |  |  | $ | 828,784 |  |  | $ | 745,688 |
Engineered Systems |  |  | 568,207 |  |  |  | 381,469 |  |  |  | 1,069,427 |  |  |  | 651,655 |
Federal Solutions revenues |  |  | 988,603 |  |  |  | 762,797 |  |  |  | 1,898,211 |  |  |  | 1,397,343 |
Infrastructure – North America |  |  | 434,163 |  |  |  | 373,153 |  |  |  | 799,445 |  |  |  | 692,712 |
Infrastructure – Europe, Middle East and Africa |  |  | 247,701 |  |  |  | 220,536 |  |  |  | 508,487 |  |  |  | 439,897 |
Critical Infrastructure revenues |  |  | 681,864 |  |  |  | 593,689 |  |  |  | 1,307,932 |  |  |  | 1,132,609 |
Total Revenue |  | $ | 1,670,467 |  |  | $ | 1,356,486 |  |  | $ | 3,206,143 |  |  | $ | 2,529,952 |
Effective October 1, 2023, the Company reorganized its Critical Infrastructure business units from Mobility Solutions and Connected Communities to Infrastructure – North America and Infrastructure – Europe, Middle East and Africa. The prior year information in the table above has been reclassified to conform to the business unit changes.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration