XML 241 R22.htm IDEA: XBRL DOCUMENT
v3.22.4

Business Segments | 12 Months Ended
--- | ---
Dec. 31, 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 years ended December 31, 2022, 2021 and 2020:
| Reportable Segments |  |  |  |
(in thousands) | Civil |  | Building |  | Specialty Contractors |  | Total |  | Corporate |  | Consolidated Total
Year ended December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Total revenue | $ | 1,956,968 |  |  | $ | 1,305,468 |  |  | $ | 813,531 |  |  | $ | 4,075,967 |  |  | $ | — |  |  | $ | 4,075,967 |
Elimination of intersegment revenue | (222,086) |  |  | (62,897) |  |  | (229) |  |  | (285,212) |  |  | — |  |  | (285,212) |
Revenue from external customers | $ | 1,734,882 |  |  | $ | 1,242,571 |  |  | $ | 813,302 |  |  | $ | 3,790,755 |  |  | $ | — |  |  | $ | 3,790,755 |
Income (loss) from construction operations(a) | $ | 21,123 |  |  | $ | 7,166 |  |  | $ | (168,019) |  |  | $ | (139,730) |  |  | $ | (65,034) |  | (b) | $ | (204,764) |
Capital expenditures | $ | 49,819 |  |  | $ | 2,333 |  |  | $ | 2,545 |  |  | $ | 54,697 |  |  | $ | 5,083 |  |  | $ | 59,780 |
Depreciation and amortization(c) | $ | 51,123 |  |  | $ | 1,713 |  |  | $ | 2,098 |  |  | $ | 54,934 |  |  | $ | 9,430 |  |  | $ | 64,364 |
Year ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Total revenue | $ | 2,443,828 |  |  | $ | 1,574,759 |  |  | $ | 1,120,115 |  |  | $ | 5,138,702 |  |  | $ | — |  |  | $ | 5,138,702 |
Elimination of intersegment revenue | (348,068) |  |  | (146,657) |  |  | (2,147) |  |  | (496,872) |  |  | — |  |  | (496,872) |
Revenue from external customers | $ | 2,095,760 |  |  | $ | 1,428,102 |  |  | $ | 1,117,968 |  |  | $ | 4,641,830 |  |  | $ | — |  |  | $ | 4,641,830 |
Income (loss) from construction operations(d) | $ | 266,214 |  |  | $ | 28,721 |  |  | $ | (9,961) |  |  | $ | 284,974 |  |  | $ | (58,170) |  | (b) | $ | 226,804 |
Capital expenditures | $ | 37,067 |  |  | $ | 359 |  |  | $ | 476 |  |  | $ | 37,902 |  |  | $ | 692 |  |  | $ | 38,594 |
Depreciation and amortization(c) | $ | 102,723 |  |  | $ | 1,677 |  |  | $ | 3,316 |  |  | $ | 107,716 |  |  | $ | 10,513 |  |  | $ | 118,229 |
Year ended December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Total revenue | $ | 2,565,210 |  |  | $ | 2,114,459 |  |  | $ | 1,135,018 |  |  | $ | 5,814,687 |  |  | $ | — |  |  | $ | 5,814,687 |
Elimination of intersegment revenue | (365,311) |  |  | (129,818) |  |  | (795) |  |  | (495,924) |  |  | — |  |  | (495,924) |
Revenue from external customers | $ | 2,199,899 |  |  | $ | 1,984,641 |  |  | $ | 1,134,223 |  |  | $ | 5,318,763 |  |  | $ | — |  |  | $ | 5,318,763 |
Income (loss) from construction operations(e) | $ | 245,835 |  |  | $ | 53,158 |  |  | $ | 17,203 |  |  | $ | 316,196 |  |  | $ | (53,852) |  | (b) | $ | 262,344 |
Capital expenditures | $ | 51,044 |  |  | $ | 878 |  |  | $ | 1,917 |  |  | $ | 53,839 |  |  | $ | 942 |  |  | $ | 54,781 |
Depreciation and amortization(c) | $ | 90,250 |  |  | $ | 1,703 |  |  | $ | 3,983 |  |  | $ | 95,936 |  |  | $ | 11,098 |  |  | $ | 107,034 |
_____________________________________________________________________________________________________________ (a)During the year ended December 31, 2022, the Company’s income (loss) from construction operations in the Civil segment was adversely impacted by $38.8 million ($30.7 million, or $0.60 per diluted share, after tax) for a 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, $26.2 million ($18.9 million, or $0.37 per diluted share, after tax) of unfavorable non-cash adjustments on a completed highway project in the Northeast due to the reversal on appeal of a previously favorable lower-court ruling, a non-cash charge of $25.5 million ($18.4 million, or $0.36 per diluted share, after tax) due to an adverse legal ruling on a dispute related to a completed bridge project in New York, $24.7 million ($17.9 million, or $0.35 per diluted share, after tax) of unfavorable adjustments on a mass-transit project in California, a $16.2 million ($11.7 million, or $0.23 per diluted share, after tax) unfavorable non-cash impact related to the settlement of a long-disputed, completed project in Maryland and an unfavorable non-cash adjustment of $10.0 million ($7.2 million, or $0.14 per diluted share, after tax) due to a ruling in ongoing dispute resolution proceedings on a mass-transit project in the Northeast. The Company’s income (loss) from construction operations was favorably impacted by a project close-out adjustment of $12.7 million ($9.1 million, or $0.18 per diluted share, after tax) on a bridge project in the Midwest. The Company’s income (loss) from operations was also negatively impacted by an unfavorable adjustment of $31.4 million ($24.4 million, or $0.48 per diluted share, after tax) split evenly between the Civil and Building segments due to changes in estimates on a transportation project in the Northeast. The Building segment was also adversely impacted by an unfavorable adjustment of $11.3 million ($8.1 million, or $0.16 per diluted share, after tax) resulting from an adverse legal ruling on a hospitality project in Florida. The Company’s income (loss) from operations in the Specialty Contractors segment was adversely impacted by $46.2 million ($33.5 million, or $0.65 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, as well as growth in unapproved change orders on the electrical component of a transportation project in the Northeast, an unfavorable non-cash impact of $43.2 million ($31.4 million, or $0.61 per diluted share, after tax) related to an adverse appellate court decision involving the electrical component of a completed mass-transit project in New York, a non-cash charge of $17.8 million ($12.9 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, an $11.3 million ($8.2 million, or $0.16 per diluted share, after tax) unfavorable non-cash adjustment on a mechanical project in the Northeast as a result of settlements on previously disputed items and $11.1 million ($8.0 million, or $0.16 per diluted share, after tax) of unfavorable non-cash adjustments on another mechanical project, also in the Northeast. (b)Consists primarily of corporate general and administrative expenses. (c)Depreciation and amortization is included in income (loss) from construction operations. (d)During the year ended December 31, 2021, the Company recognized favorable adjustments in income (loss) from construction operations in the Civil segment of $29.0 million ($20.9 million, or $0.41 per diluted share, after tax) and $16.3 million ($13.5 million, or $0.26 per diluted share, after tax) on two mass-transit projects, reflecting improved profitability as a result of the negotiation and settlement of certain change orders and the associated mitigation of certain risks in 2021 as the projects progressed towards completion. The Company’s income (loss) from construction operations was also negatively impacted by $26.6 million ($20.5 million, or $0.40 per diluted share, after tax) split evenly between the Civil and Building segments due to changes in estimates on a transportation project in the Northeast that reflected a charge and the negative impact to earnings from growth in unapproved change orders, which resulted in a reduction in the project’s percentage of completion (and, correspondingly, a reduction in the percentage of estimated profit recognized for the year ended December 31, 2021 for this project). In the Specialty Contractors segment, the Company recognized additional profit after recording a reduction of $20.1 million in cost of operations during 2021 ($14.5 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 addition, the Company’s income (loss) from construction operations for the year ended December 31, 2021 was negatively impacted by $19.0 million ($13.7 million, or $0.27 per diluted share, after tax) and $17.6 million ($12.7 million, or $0.25 per diluted share, after tax) on the mechanical and electrical components, respectively, of a transportation project in the Northeast. Lastly, there was an impact of $16.2 million ($11.7 million, or $0.23 per diluted share, after tax) on an electrical project in New York 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). (e)During the year ended December 31, 2020, the Company recorded a charge of $15.2 million in income (loss) from construction operations ($11.0 million, or $0.22 per diluted share, after tax) due to an unfavorable legal ruling pertaining to a mechanical project in California in the Specialty Contractors segment, as well as a charge of $13.2 million ($9.6 million, or $0.19 per diluted share, after tax) due to an adverse arbitration ruling pertaining to an electrical project in New York in the Specialty Contractors segment. The Company also recorded a gain of $25.7 million in the Specialty Contractors segment general and administrative expenses ($18.6 million, or $0.36 per diluted share, after tax) as a result of a favorable arbitration decision and subsequent settlement of the related employment dispute. The above were the only changes in estimates considered material to the Company’s results of operations during the periods presented herein. Total assets by segment were as follows:
| As of December 31,
(in thousands) | 2022 |  | 2021
Civil | $ | 3,402,934 |  |  | $ | 3,310,648 |
Building | 898,816 |  |  | 980,989 |
Specialty Contractors | 483,535 |  |  | 631,710 |
Corporate and other(a) | (242,485) |  |  | (198,449) |
Total assets | $ | 4,542,800 |  |  | $ | 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. Geographic Information Information concerning principal geographic areas is as follows:
| Year Ended December 31,
(in thousands) | 2022 |  | 2021 |  | 2020
Revenue: |  |  |  |  |
United States | $ | 3,424,574 |  |  | $ | 4,267,734 |  |  | $ | 4,953,045 |
Foreign and U.S. territories | 366,181 |  |  | 374,096 |  |  | 365,718 |
Total revenue | $ | 3,790,755 |  |  | $ | 4,641,830 |  |  | $ | 5,318,763 |
| As of December 31,
(in thousands) | 2022 |  | 2021
Assets: |  |  |
United States | $ | 4,199,604 |  |  | $ | 4,479,873 |
Foreign and U.S. territories | 343,196 |  |  | 245,025 |
Total assets | $ | 4,542,800 |  |  | $ | 4,724,898 |
Major Customer Revenue from a single customer impacting the Civil, Building and Specialty Contractors segments represented 16.3% of the Company’s consolidated revenue for the year ended December 31, 2022. Reconciliation of Segment Information to Consolidated Amounts A reconciliation of segment results to the consolidated income (loss) before income taxes is as follows:
| Year Ended December 31,
(in thousands) | 2022 |  | 2021 |  | 2020
Income (loss) from construction operations | $ | (204,764) |  |  | $ | 226,804 |  |  | $ | 262,344 |
Other income (expense) | 6,732 |  |  | 2,004 |  |  | (11,853) |
Interest expense | (69,638) |  |  | (69,026) |  |  | (76,212) |
Income (loss) before income taxes | $ | (267,670) |  |  | $ | 159,782 |  |  | $ | 174,279 |

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 -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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration