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Business Segments | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Business Segments | Business Segments The Company offers general contracting, pre-construction planning and comprehensive project management services, including planning and scheduling of manpower, equipment, materials and subcontractors required for the timely completion of a project in accordance with the terms and specifications contained in a construction contract. The Company also offers self-performed construction services: site work, concrete forming and placement, steel erection, electrical, mechanical, plumbing, and HVAC (heating, ventilation and air conditioning). As described below, the Company’s business is conducted through three segments: Civil, Building and Specialty Contractors. These segments are determined based on how the Company’s Chairman and Chief Executive Officer (chief operating decision maker) aggregates business units when evaluating performance and allocating resources. The Civil segment specializes in public works construction and the replacement and reconstruction of infrastructure. The contracting services provided by the Civil segment include construction and rehabilitation of highways, bridges, tunnels, mass-transit systems, military defense facilities, and water management and wastewater treatment facilities. The Building segment has significant experience providing services for private and public works customers in a number of specialized building markets, including: hospitality and gaming, transportation, health care, commercial offices, government facilities, sports and entertainment, education, correctional facilities, biotech, pharmaceutical, industrial and technology. The Specialty Contractors segment specializes in electrical, mechanical, plumbing, HVAC and fire protection systems for a full range of civil and building construction projects in the industrial, commercial, hospitality and gaming, and mass-transit end markets. This segment provides the Company with unique strengths and capabilities that allow the Company to position itself as a full-service contractor with greater control over scheduled work, project delivery, and cost and risk management. To the extent that a contract is co-managed and co-executed among segments, the Company allocates the share of revenues and costs of the contract to each segment to reflect the shared responsibilities in the management and execution of the project. The following tables set forth certain reportable segment information relating to the Company’s operations for the three and nine months ended September 30, 2022 and 2021:
| Reportable Segments |  |  |  |
(in thousands) | Civil | Building | Specialty Contractors | Total |  | Corporate |  | Consolidated Total
Three Months Ended September 30, 2022 |  |  |  |  |  |  |
Total revenue | $ | 564,205 |  | $ | 341,614 |  | $ | 251,974 |  | $ | 1,157,793 |  |  | $ | — |  |  | $ | 1,157,793 |
Elimination of intersegment revenue | (63,300) |  | (23,564) |  | (3) |  | (86,867) |  |  | — |  |  | (86,867) |
Revenue from external customers | $ | 500,905 |  | $ | 318,050 |  | $ | 251,971 |  | $ | 1,070,926 |  |  | $ | — |  |  | $ | 1,070,926 |
Income (loss) from construction operations | $ | 22,786 |  | $ | 56 |  | $ | (11,836) |  | $ | 11,006 |  | (a) | $ | (17,898) |  | (b) | $ | (6,892) |
Capital expenditures | $ | 11,872 |  | $ | 921 |  | $ | 748 |  | $ | 13,541 |  |  | $ | 423 |  |  | $ | 13,964 |
Depreciation and amortization(c) | $ | 12,166 |  | $ | 470 |  | $ | 529 |  | $ | 13,165 |  |  | $ | 2,368 |  |  | $ | 15,533 |
Three Months Ended September 30, 2021 |  |  |  |  |  |  |
Total revenue | $ | 624,549 |  | $ | 395,013 |  | $ | 271,316 |  | $ | 1,290,878 |  |  | $ | — |  |  | $ | 1,290,878 |
Elimination of intersegment revenue | (78,331) |  | (34,072) |  | (253) |  | (112,656) |  |  | — |  |  | (112,656) |
Revenue from external customers | $ | 546,218 |  | $ | 360,941 |  | $ | 271,063 |  | $ | 1,178,222 |  |  | $ | — |  |  | $ | 1,178,222 |
Income (loss) from construction operations | $ | 62,555 |  | $ | 10,786 |  | $ | (5,470) |  | $ | 67,871 |  |  | $ | (15,778) |  | (b) | $ | 52,093 |
Capital expenditures | $ | 7,847 |  | $ | 87 |  | $ | 134 |  | $ | 8,068 |  |  | $ | 234 |  |  | $ | 8,302 |
Depreciation and amortization(c) | $ | 26,234 |  | $ | 416 |  | $ | 777 |  | $ | 27,427 |  |  | $ | 2,634 |  |  | $ | 30,061 |
____________________________________________________________________________________________________ (a)During the three months ended September 30, 2022, the Company’s income (loss) from construction operations was adversely impacted by a $14.3 million ($10.2 million, or $0.20 per diluted share, after tax) unfavorable adjustment on a completed Civil segment highway project in the Northeast due to the reversal on appeal of a p reviously favorable lower-court ruling. (b)Consists primarily of corporate general and administrative expenses. (c)Depreciation and amortization is included in income (loss) from construction operations.
| Reportable Segments |  |  |  |
(in thousands) | Civil | Building | Specialty Contractors | Total |  | Corporate |  | Consolidated Total
Nine Months Ended September 30, 2022 |  |  |  |  |  |  |
Total revenue | $ | 1,478,162 |  | $ | 960,148 |  | $ | 673,302 |  | $ | 3,111,612 |  |  | $ | — |  |  | $ | 3,111,612 |
Elimination of intersegment revenue | (182,840) |  | (44,509) |  | (156) |  | (227,505) |  |  | — |  |  | (227,505) |
Revenue from external customers | $ | 1,295,322 |  | $ | 915,639 |  | $ | 673,146 |  | $ | 2,884,107 |  |  | $ | — |  |  | $ | 2,884,107 |
Income (loss) from construction operations | $ | 12,052 |  | $ | 9,453 |  | $ | (82,461) |  | $ | (60,956) |  | (a) | $ | (46,397) |  | (b) | $ | (107,353) |
Capital expenditures | $ | 38,703 |  | $ | 973 |  | $ | 2,202 |  | $ | 41,878 |  |  | $ | 931 |  |  | $ | 42,809 |
Depreciation and amortization(c) | $ | 44,191 |  | $ | 1,261 |  | $ | 1,539 |  | $ | 46,991 |  |  | $ | 7,063 |  |  | $ | 54,054 |
Nine Months Ended September 30, 2021 |  |  |  |  |  |  |
Total revenue | $ | 1,850,748 |  | $ | 1,267,984 |  | $ | 877,634 |  | $ | 3,996,366 |  |  | $ | — |  |  | $ | 3,996,366 |
Elimination of intersegment revenue | (273,603) |  | (117,150) |  | (553) |  | (391,306) |  |  | — |  |  | (391,306) |
Revenue from external customers | $ | 1,577,145 |  | $ | 1,150,834 |  | $ | 877,081 |  | $ | 3,605,060 |  |  | $ | — |  |  | $ | 3,605,060 |
Income (loss) from construction operations | $ | 187,733 |  | $ | 19,514 |  | $ | 5,814 |  | $ | 213,061 |  | (d) | $ | (42,511) |  | (b) | $ | 170,550 |
Capital expenditures | $ | 26,027 |  | $ | 211 |  | $ | 298 |  | $ | 26,536 |  |  | $ | 626 |  |  | $ | 27,162 |
Depreciation and amortization(c) | $ | 80,125 |  | $ | 1,272 |  | $ | 2,628 |  | $ | 84,025 |  |  | $ | 8,171 |  |  | $ | 92,196 |
____________________________________________________________________________________________________ (a)During the nine months ended September 30, 2022, the Company’s income (loss) from construction operations was adversely impacted by $36.0 million ($26.0 million, or $0.51 per diluted share, after tax) due to unfavorable adjustments related to the unforeseen cost of project close-out issues, remediation work, extended project supervision and associated labor inefficiencies on the electrical component of a transportation project in the Northeast in the Specialty Contractors segment, and $34.6 million ($27.3 million, or $0.53 per diluted share, after tax) for a Civil segment mass-transit project in California, which resulted from the successful negotiation of significant lower margin (and lower risk) change orders that increased the project’s overall estimated profit but reduced the project’s percentage of completion and overall margin percentage. The Company’s income (loss) from construction operations was also impacted by a non-cash charge of $25.5 million ($18.3 million, or $0.36 per diluted share, after tax) due to an adverse legal ruling on a dispute related to a completed Civil segment bridge project in New York, an $18.0 million ($13.9 million, or $0.27 per diluted share, after tax) unfavorable adjustment split evenly between the Civil and Building segments due to changes in estimates on the same transportation project in the Northeast mentioned above, a non-cash charge of $17.8 million ($12.8 million, or $0.25 per diluted share, after tax) that increased cost of operations associated with the partial reversal by an appellate court of previously awarded legal damages related to a completed electrical project in New York in the Specialty Contractors segment, a $16.2 million ($11.6 million, or $0.23 per diluted share, after tax) unfavorable non-cash impact related to the settlement of a long-disputed, completed Civil segment project in Maryland, a $14.3 million ($10.2 million, or $0.20 per diluted share, after tax) unfavorable adjustment on a completed Civil segment highway project in the Northeast due to the reversal on appeal of a previously favorable lower-court ruling, and $13.1 million ($9.4 million, or $0.18 per diluted share, after tax) of unfavorable adjustments on a Civil segment mass-transit project in California. (b)Consists primarily of corporate general and administrative expenses. (c)Depreciation and amortization is included in income (loss) from construction operations. (d)During the nine months ended September 30, 2021, the Company recorded a reduction of $20.1 million in cost of operations ($14.6 million, or $0.28 per diluted share, after tax) due to a favorable trial court ruling awarding the Company the recovery of certain costs previously incurred on a completed electrical project in New York in the Specialty Contractors segment. The Company also recognized $18.1 million of additional revenue ($13.0 million, or $0.25 per diluted share, after tax) as a result of favorable adjustments on a Civil segment mass-transit project in California reflecting improved profitability due to the mitigation of certain risks as the project progresses toward completion. The Company’s income from construction operations was also negatively impacted by $14.5 million ($10.5 million, or $0.21 per diluted share, after-tax) due to changes in estimates on an electrical project in New York in the Specialty Contractors segment that included unfavorable adjustments and the negative impact to the period associated with increases to project forecasts due to growth in unapproved change orders (expected to be negotiated in future periods). A reconciliation of segment results to the consolidated income (loss) before income taxes is as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2022 | 2021 |  | 2022 | 2021
Income (loss) from construction operations | $ | (6,892) |  | $ | 52,093 |  |  | $ | (107,353) |  | $ | 170,550 |
Other income (expense) | 397 |  | (464) |  |  | 5,114 |  | 1,142 |
Interest expense | (17,015) |  | (16,694) |  |  | (49,711) |  | (52,442) |
Income (loss) before income taxes | $ | (23,510) |  | $ | 34,935 |  |  | $ | (151,950) |  | $ | 119,250 |
Total assets by segment were as follows:
(in thousands) | As of September 30, 2022 | As of December 31, 2021
Civil | $ | 3,467,173 |  | $ | 3,310,648 |
Building | 976,400 |  | 980,989 |
Specialty Contractors | 607,424 |  | 631,710 |
Corporate and other(a) | (290,023) |  | (198,449) |
Total assets | $ | 4,760,974 |  | $ | 4,724,898 |
____________________________________________________________________________________________________ (a)Consists principally of cash, equipment, tax-related assets and insurance-related assets, offset by the elimination of assets related to intersegment revenue.

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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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