Investments in and Advances to Joint Ventures

9 Months Ended

Sep. 30, 2024

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 $162.7 million and $147.7 million at September 30, 2024 and December 31, 2023.

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, 2024		December 31, 2023
Current assets	$	503,099	$	426,633
Noncurrent assets		10,894		14,295
Total assets		513,993		440,928
Current liabilities		307,612		260,286
Noncurrent liabilities		2,916		5,132
Total liabilities		310,528		265,418
Total joint venture equity	$	203,465	$	175,510


	Three Months Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Revenue	$	193,461	$	185,602	$	582,209	$	514,339
Costs		165,873		160,423		500,308		445,829
Net income	$	27,588	$	25,179	$	81,901	$	68,510
Net income attributable to noncontrolling interests	$	13,638	$	12,364	$	40,428	$	33,617

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, 2024		December 31, 2023
Current assets	$	1,675,165	$	1,607,953
Noncurrent assets		465,806		483,693
Total assets		2,140,971		2,091,646
Current liabilities		996,238		1,057,113
Noncurrent liabilities		496,097		518,647
Total liabilities		1,492,335		1,575,760
Total joint venture equity	$	648,636	$	515,886
Investments in and advances to unconsolidated joint ventures	$	194,524	$	128,204


	Three Months Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024			September 30, 2023
Revenue	$	581,232	$	634,937	$	1,598,764		$	1,514,561
Costs		560,492		581,041		1,593,213			1,474,991
Net income (loss)	$	20,740	$	53,896	$	5,551		$	39,570
Equity in losses of unconsolidated joint ventures	$	872	$	10,262	$	(18,025	)	$	4,497

The Company had net contributions to its unconsolidated joint ventures for the three months ended September 30, 2024 and September 30, 2023 of $34.4 million and of $36.1 million, respectively and $83.7 million and $50.8 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.

The following table presents certain financial statement impacts from changes in estimates which resulted in a write-down in a design build joint venture in the Critical Infrastructure segment (in thousands):


	Three Months Ended					Nine Months Ended
	September 30, 2024			September 30, 2023		September 30, 2024			September 30, 2023
Operating income (loss)	$	(6,716	)	$	5,099	$	(37,509	)	$	(12,414	)
Net income (loss)		(4,936	)		3,799		(35,258	)		(9,248	)
Diluted income (loss) per share	$	(0.04	)	$	0.03	$	(0.33	)	$	(0.08	)