Knife River (KNF) 10-Q 16 May 23 2023 Q1 Quarterly report Financial data

Cover page

Cover page - shares	3 Months Ended
	Mar. 31, 2023	May 11, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	1-41642
Entity Registrant Name	Knife River Holding Company
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	92-1008893
Entity Address, Address Line One	1150 West Century Avenue
Entity Address, Address Line Two	P.O. Box 5568
Entity Address, City or Town	Bismarck
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58506-5568
City Area Code	701
Local Phone Number	530-1400
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	KNF
Security Exchange Name	NYSE
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity common stock, shares outstanding		1,000
Entity Central Index Key	0001955520
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue:
Revenue:	$ 307,900	$ 309,966
Cost of revenue:
Cost of Revenue	303,805	308,852
Gross profit	4,095	1,114
Selling, general and administrative expenses	48,658	45,719
Operating loss	(44,563)	(44,605)
Interest expense	9,495	5,266
Other income (expense)	826	(1,936)
Loss before income taxes	(53,232)	(51,807)
Income tax benefit	(11,912)	(11,797)
Net loss	$ (41,320)	$ (40,010)
Net loss per share, basic
Loss Per Share, Basic, Total	$ (516.50)	$ (500.13)
Net loss per share, diluted
Loss Per Share, Diluted, Total	$ (516.50)	$ (500.13)
Weighted Average Number of Shares Outstanding, Basic	80	80
Weighted Average Number of Shares Outstanding, Diluted	80	80
Construction materials
Revenue:
Revenue:	$ 192,917	$ 195,698
Cost of revenue:
Cost of Revenue	194,129	202,858
Contracting services
Revenue:
Revenue:	114,983	114,268
Cost of revenue:
Cost of Revenue	$ 109,676	$ 105,994

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net loss	$ (41,320)	$ (40,010)
Other comprehensive income:
Reclassification adjustment for loss on derivative instruments included in net income (loss), tax	15	27
Reclassification adjustment for loss on derivative instruments included in net income (loss), net of tax	46	82
Postretirement liability adjustment:
Amortization of postretirement liability losses included in net periodic benefit cost, tax	15	71
Amortization of postretirement liability losses included in net periodic benefit cost, net of tax	47	221
Other comprehensive income	93	303
Comprehensive loss attributable to common stockholders	$ (41,227)	$ (39,707)

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 7,218	$ 10,090
Receivables, net	174,590	210,157
Costs and estimated earnings in excess of billings on uncompleted contracts	30,974	31,145
Due from related-party	16,860	16,050
Inventories	373,215	323,277
Prepayments and other current assets	36,301	17,848
Total current assets	639,158	608,567
Noncurrent assets:
Property, plant and equipment	2,512,655	2,489,408
Less accumulated depreciation, depletion and amortization	1,195,287	1,174,195
Net property, plant and equipment	1,317,368	1,315,213
Goodwill	274,540	274,540
Other intangible assets, net	12,763	13,430
Operating lease right-of-use assets	43,995	45,873
Investments and other	38,945	36,696
Total noncurrent assets	1,687,611	1,685,752
Total assets	2,326,769	2,294,319
Current liabilities:
Long-term debt - current portion	211	211
Related-party notes payable - current portion	238,000	238,000
Accounts payable	80,380	87,370
Billings in excess of costs and estimated earnings on uncompleted contracts	37,375	39,843
Accrued compensation	14,010	29,192
Due to related-party	23,521	20,286
Current operating lease liabilities	12,981	13,210
Other accrued liabilities	66,677	88,778
Total current liabilities	473,155	516,890
Noncurrent liabilities:
Long-term debt	359	427
Related-party notes payable	578,060	446,449
Deferred income taxes	175,077	175,804
Noncurrent operating lease liabilities	31,013	32,663
Other	94,336	93,497
Total liabilities	1,352,000	1,265,730
Commitments and contingencies
Stockholder's equity:
Common stock	800	800
Other paid-in capital	548,174	549,106
Retained earnings	441,680	494,661
Treasury Stock, Common, Value	(3,626)	(3,626)
Accumulated other comprehensive loss	(12,259)	(12,352)
Total stockholder's equity	974,769	1,028,589
Total liabilities and stockholder's equity	$ 2,326,769	$ 2,294,319
Common Stock, Shares Authorized	80,000	80,000
Common Stock, Par or Stated Value Per Share	$ 10	$ 10
Treasury Stock, Common, Shares	(538,921)	(538,921)

Consolidated Statements of Equi

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common stock	Other paid-in capital	Retained earnings	Treasury Stock, Common	Accumulated other comprehensive loss
Common stock balance (in shares) at Dec. 31, 2021		80,000
Balance at Dec. 31, 2021	$ 952,844	$ 800	$ 549,714	$ 430,446	$ (3,626)	$ (24,490)
Treasury Stock, Common, Shares at Dec. 31, 2021					(538,921)
Net loss	(40,010)			(40,010)
Other comprehensive income	303					303
Equity net transfers to (from) Parent	(16,102)		(3,099)	(13,003)
Common stock balance (in shares) at Mar. 31, 2022		80,000
Balance at Mar. 31, 2022	897,035	$ 800	546,615	377,433	$ (3,626)	(24,187)
Treasury Stock, Common, Shares at Mar. 31, 2022					(538,921)
Common stock balance (in shares) at Dec. 31, 2022		80,000
Balance at Dec. 31, 2022	$ 1,028,589	$ 800	549,106	494,661	$ (3,626)	(12,352)
Treasury Stock, Common, Shares at Dec. 31, 2022	538,921				(538,921)
Net loss	$ (41,320)			(41,320)
Other comprehensive income	93					93
Equity net transfers to (from) Parent	(12,593)		(932)	(11,661)
Common stock balance (in shares) at Mar. 31, 2023		80,000
Balance at Mar. 31, 2023	$ 974,769	$ 800	$ 548,174	$ 441,680	$ (3,626)	$ (12,259)
Treasury Stock, Common, Shares at Mar. 31, 2023	538,921				(538,921)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities:
Net loss	$ (41,320)	$ (40,010)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, Depletion and Amortization	29,629	28,350
Deferred income taxes	(757)	(3,389)
Provision for credit losses	428	(253)
Amortization of debt issuance costs	132	101
Employee stock-based compensation costs	453	333
Pension and postretirement benefit plan net periodic benefit cost	298	327
Unrealized (gains) losses on investments	(892)	988
Gains on sales of assets	(2,816)	(1,405)
Changes in current assets and liabilities, net of acquisitions:
Receivables	34,268	10,843
Due from related-party	(810)	4,557
Inventories	(49,938)	(49,479)
Other current assets	(18,391)	(22,683)
Accounts payable	1,880	9,618
Due to related-party	4,588	5,904
Other current liabilities	(36,281)	(20,672)
Pension and postretirement benefit plan contributions	(150)	(103)
Other noncurrent changes	400	810
Net cash used in continuing operations	(79,279)	(76,163)
Investing activities:
Capital expenditures	(42,409)	(40,791)
Acquisitions, net of cash acquired	0	(524)
Net proceeds from sale or disposition of property and other	3,221	2,558
Investments	(1,566)	(1,501)
Net cash used in investing activities	(40,754)	(40,258)
Financing activities:
Issuance of current related-party notes, net	0	100,000
Issuance of long-term related-party notes, net	131,610	31,681
Repayment of long-term debt	(68)	(116)
Debt issuance costs	(21)	(715)
Net transfers to Parent	(14,360)	(16,286)
Net cash provided by financing activities	117,161	114,564
Decrease in cash and cash equivalents	(2,872)	(1,857)
Cash and cash equivalents -- beginning of year	10,090	13,848
Cash and cash equivalents -- end of period	$ 7,218	$ 11,991

Background

Background	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Background	Background On August 4, 2022, MDU Resources announced that its board of directors approved a plan to pursue the separation of the Company from MDU Resources. The separation will result in two independent, publicly traded companies, MDU Resources Group, Inc. and Knife River Holding Company. On March 10, 2023, Knife River Holding Company filed publicly a draft Registration Statement on Form 10 with the SEC. On May 3, 2023, MDU Resources' board of directors approved the separation and the distribution of approximately 90 percent of the issued and outstanding shares of the Company to MDU Resources' stockholders. Stockholders of MDU Resources will receive one share of the Company's common stock for every four shares of MDU Resources common stock held on May 22, 2023, the record date for the distribution. MDU Resources will retain approximately 10 percent of the Company's common stock immediately following the separation with the intent to dispose of such shares within twelve months after the separation. Prior to completing the separation, MDU Resources may adjust the percentage of the Company's common stock to be distributed to MDU Resources' stockholders and retained by MDU Resources in response to market and other factors. The Registration Statement was declared effective by the SEC on May 10, 2023, and the separation is expected to be completed on May 31, 2023, subject to certain conditions. The separation of Knife River is planned as a tax-free spinoff transaction to MDU Resources' stockholders for U.S. federal income tax purposes. More information on the separation and distribution, as well as the Company's historical results, can be found within the Company's Registration Statement on Form 10. Until the separation is effective, the Company is the construction materials and contracting segment of MDU Resources. Its operations are located in the western and central regions of the United States. The Company mines, processes and sells construction aggregates (crushed stone and sand and gravel) and produces and sells asphalt and ready-mix concrete. The Company is focused on the vertical integration of its aggregates-based construction materials, which is used to support value-added downstream products and contracting services.

Basis of presentation

Basis of presentation	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation [Text Block]	Basis of presentation The accompanying consolidated interim financial statements were prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Interim financial statements do not include all disclosures provided in annual financial statements and, accordingly, these financial statements should be read in conjunction with the Form 10. The information is unaudited but includes adjustments that are, in the opinion of management, necessary for a fair presentation of the accompanying consolidated interim financial statements and are of a normal recurring nature. Knife River has historically operated as a wholly owned subsidiary of Centennial and an indirect, wholly owned subsidiary of MDU Resources and not as a stand-alone company. The accompanying consolidated financial statements and footnotes, which were prepared on a “carve-out” basis in connection with the expected separation, were derived from the consolidated financial statements of MDU Resources as if the Company operated on a stand-alone basis during the periods presented, and were prepared utilizing the legal entity approach in conformity with GAAP. The Company utilized allocations and carve-out methodologies to prepare its consolidated financial statements. The consolidated financial statements herein may not be indicative of the Company's future performance or actual expenses that would have been incurred as a stand-alone company for the periods presented. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements included in the Company's Registration Statement on Form 10. All revenues and costs, as well as assets and liabilities, directly associated with the business activity of the Company are included in the consolidated financial statements. The consolidated financial statements also include expense allocations for certain functions provided by MDU Resources and Centennial, including, but not limited to certain general corporate expenses related to senior management, legal, human resources, finance and accounting, treasury, information technology, communications, procurement, tax, insurance and other shared services. These general corporate expenses are included in the Consolidated Statements of Operations within selling, general and administrative expenses. The amounts allocated were $4.6 million and $4.9 million for the three months ended March 31, 2023 and 2022, respectively. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder principally allocated on the basis of percent of total capital invested or other allocation methodologies that are considered to be a reasonable reflection of the utilization of the services provided to the benefits received. Following the separation from MDU Resources, the Company may perform certain functions using its own resources or contracted services. For an interim period following the separation, however, some of these functions will continue to be provided by MDU Resources under a transition services agreement. Historically, Knife River has participated in Centennial’s centralized cash management program, including its overall financing arrangements. Knife River has related-party note agreements in place with Centennial for the financing of its capital needs, which are reflected as related-party notes payable on the Consolidated Balance Sheets. Interest expense in the Consolidated Statements of Operations reflects the allocation of interest on borrowing and funding associated with the related-party note agreements. MDU Resources maintains various benefit and stock-based compensation plans at a corporate level while certain defined pension benefit plans are maintained at a subsidiary level. The Company’s employees participate in these aforementioned plans and the costs associated with its employees are included in the Company’s consolidated financial statements, as well as any net benefit plan assets or obligations. Management has also evaluated the impact of events occurring after March 31, 2023, up to the date of issuance of these consolidated interim financial statements on May 16, 2023, that would require recognition or disclosure in the Consolidated Financial Statements. For more information on subsequent events, see Note 17. Principles of consolidation The consolidated financial statements were prepared in accordance with GAAP and include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying consolidated financial statements. Related-party transactions between the Company and MDU Resources or Centennial for general operating activities and intercompany debt have been included in the consolidated financial statements. These related-party transactions have historically been settled in cash and are reflected in the Consolidated Balance Sheets as “Due from related-party” or “Due to related-party” with the aggregate net effect reflected in the Consolidated Statements of Cash Flows within operating activities and “Related-party notes payable” with the aggregate net effect reflected in the Consolidated Statements of Cash Flows within financing activities. The aggregate net effect of related-party transactions not settled in cash have been reflected in the Consolidated Balance Sheets within “Other paid-in capital” and in the Consolidated Statements of Cash Flows as “Net transfers to Parent” in financing activities. See Note 16 for additional information on related-party transactions. Use of estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates are used for items such as long-lived assets and goodwill; fair values of acquired assets and liabilities under the acquisition method of accounting; aggregate reserves; property depreciable lives; tax provisions; revenue recognized using the cost-to-cost measure of progress for contracts; expected credit losses; environmental and other loss contingencies; costs on contracting services contracts; actuarially determined benefit costs; asset retirement obligations; lease classification; present value of right-of-use assets and lease liabilities; and the valuation of stock-based compensation. These estimates are based on management’s best knowledge of current events, historical experience, actions that the Company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As additional information becomes available, or actual amounts are determinable, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. New accounting standards There have been no recent accounting standards that are expected to materially affect the Company.

Seasonality of operations

Seasonality of operations	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Seasonality of operations	Some of the Company's operations are seasonal and revenues from, and certain expenses for, such operations may fluctuate significantly among quarterly periods, with lower activity in the winter months and higher activity in the summer months. Accordingly, the interim results for particular segments, and for the Company as a whole, may not be indicative of results for the full fiscal year.

Receivables and allowance for e

Receivables and allowance for expected credit losses	3 Months Ended
	Mar. 31, 2023
Credit Loss [Abstract]
Receivables and allowance for expected credit loss	Receivables consist primarily of trade and contracting services contract receivables for the sale of goods and services net of expected credit losses. A majority of the Company's receivables are due in 30 days or less. The total balance of receivables past due 90 days or more was $13.7 million and $11.2 million at March 31, 2023 and December 31, 2022, respectively. Receivables were as follows: March 31, 2023 December 31, 2022 (In thousands) Trade receivables $ 100,487 $ 104,347 Contracting services contract receivables 52,487 82,428 Retention receivables 27,438 28,859 Receivables, gross 180,412 215,634 Less expected credit loss 5,822 5,477 Receivables, net $ 174,590 $ 210,157 The Company's expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics; current conditions; and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses. Risk characteristics used by the Company may include customer mix, knowledge of customers and general economic conditions of the various local economies, among others. Specific account balances are written off when management determines the amounts to be uncollectible. Management has reviewed the balance reserved through the allowance for expected credit losses and believes it is reasonable. Details of the Company's expected credit losses were as follows: Pacific Northwest Mountain North All Other Total (In thousands) At December 31, 2022 $ 2,045 $ 1,253 $ 1,278 $ 839 $ 62 $ 5,477 Current expected credit loss provision 45 313 164 (89) (1) 432 Less write-offs charged against the allowance 1 68 18 — — 87 At March 31, 2023 $ 2,089 $ 1,498 $ 1,424 $ 750 $ 61 $ 5,822 Pacific Northwest Mountain North All Other Total (In thousands) At December 31, 2021 $ 2,052 $ 512 $ 1,610 $ 1,152 $ 80 $ 5,406 Current expected credit loss provision 1 (125) (130) 6 (5) (253) Less write-offs charged against the allowance 1 20 4 1 1 27 At March 31, 2022 $ 2,052 $ 367 $ 1,476 $ 1,157 $ 74 $ 5,126

Inventories

Inventories	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories on the Consolidated Balance sheets were as follows: March 31, 2023 December 31, 2022 (In thousands) Finished products $ 220,234 $ 211,496 Raw materials 114,735 78,571 Supplies and parts 38,246 33,210 Total $ 373,215 $ 323,277 Inventories are valued at the lower of cost or net realizable value using the average cost method. Inventories include production costs incurred as part of the Company's aggregate mining activities. These inventoriable production costs include all mining and processing costs associated with the production of aggregates. Stripping costs incurred during the production phase, which represent costs of removing overburden and waste materials to access mineral deposits, are a component of inventoriable production costs.

Accumulated other comprehensive

Accumulated other comprehensive loss	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Accumulated other comprehensive loss	The after-tax changes in the components of accumulated other comprehensive loss were as follows: Net Unrealized Postretirement Total (In thousands) At December 31, 2022 $ (90) $ (12,262) $ (12,352) Amounts reclassified from accumulated other comprehensive loss 46 47 93 Net current-period other comprehensive income 46 47 93 At March 31, 2023 $ (44) $ (12,215) $ (12,259) Net Unrealized Postretirement Total (In thousands) At December 31, 2021 $ (418) $ (24,072) $ (24,490) Amounts reclassified from accumulated other comprehensive loss 82 221 303 Net current-period other comprehensive income 82 221 303 At March 31, 2022 $ (336) $ (23,851) $ (24,187) The following amounts were reclassified out of accumulated other comprehensive loss into net loss. The amounts presented in parenthesis indicate a decrease to net loss on the Consolidated Statements of Operations. The reclassifications were as follows: Three Months Ended Location on Consolidated Statements of Operations March 31, 2023 2022 (In thousands) Reclassification adjustment for loss on derivative instruments included in net loss $ (61) $ (109) Interest expense 15 27 Income taxes (46) (82) Amortization of postretirement liability losses included in net periodic benefit cost (62) (292) Other income 15 71 Income taxes (47) (221) Total reclassifications $ (93) $ (303)

Revenue from contracts with cus

Revenue from contracts with customers	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue from contracts with customers	Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes. Disaggregation In the following tables, revenue is disaggregated by category for each segment. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. For more information on the Company’s reportable segments, see Note 13. Presented in the following tables are the sales of materials to both third parties and internal customers. Due to consolidation requirements, the internal sales revenues must be eliminated against the construction materials product used in downstream materials and contracting services to arrive at the external operating revenues. Three Months Ended March 31, 2023 Pacific Northwest Mountain North All Other Total (In thousands) Aggregates $ 18,697 $ 42,573 $ 9,667 $ 4,020 $ 8,564 $ 83,521 Ready-mix concrete 26,144 33,905 14,370 12,287 10,063 96,769 Asphalt 1,316 6,927 810 169 4,397 13,619 Other 26,055 2,682 2 1,585 8,269 38,593 Contracting services public-sector 3,971 17,003 28,238 4,526 18,334 72,072 Contracting services private-sector 2,899 25,761 13,445 109 697 42,911 Internal sales (11,295) (12,932) (5,914) (1,723) (7,721) (39,585) Revenues from contracts with customers $ 67,787 $ 115,919 $ 60,618 $ 20,973 $ 42,603 $ 307,900 Three Months Ended March 31, 2022 Pacific Northwest Mountain North All Other Total (In thousands) Aggregates $ 19,063 $ 33,672 $ 9,211 $ 4,000 $ 11,701 $ 77,647 Ready-mix concrete 30,055 36,323 16,170 12,357 13,593 108,498 Asphalt 4,471 8,411 331 46 4,827 18,086 Other 26,890 3,283 5 2,152 5,171 37,501 Contracting services public-sector 9,296 16,911 22,403 5,520 13,043 67,173 Contracting services private-sector 11,722 20,333 14,411 61 568 47,095 Internal sales (16,148) (14,142) (4,062) (1,312) (10,370) (46,034) Revenues from contracts with customers $ 85,349 $ 104,791 $ 58,469 $ 22,824 $ 38,533 $ 309,966

Uncompleted Contracts

Uncompleted Contracts	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Uncompleted contracts	The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost-to-cost method of accounting. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in a contract asset or a contract liability. A contract asset occurs when revenues are recognized under the cost-to-cost measure of progress, which exceeds amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. A contract liability occurs when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation. The changes in contract assets and liabilities were as follows: March 31, 2023 December 31, 2022 Change Location on Consolidated Balance Sheets (In thousands) Contract assets $ 30,974 $ 31,145 $ (171) Costs and estimated earnings in excess of billings on uncompleted contracts Contract liabilities (37,375) (39,843) 2,468 Billings in excess of costs and estimated earnings on uncompleted contracts Net contract liabilities $ (6,401) $ (8,698) $ 2,297 The Company recognized $20.3 million in revenue for the three months ended March 31, 2023, which was previously included in contract liabilities at December 31, 2022. The Company recognized $20.0 million in revenue for the three months ended March 31, 2022, which was previously included in contract liabilities at December 31, 2021. The Company recognized a net increase in revenues of $3.6 million and $4.8 million for the three months ended March 31, 2023 and 2022, respectively, from performance obligations satisfied in prior periods. Remaining performance obligations The remaining performance obligations, also referred to as backlog, include unrecognized revenues that the Company reasonably expects to be realized. These unrecognized revenues can include: projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. The majority of the Company's contracts for contracting services have an original duration of less than one year. At March 31, 2023, the Company's remaining performance obligations were $958.5 million. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $863.8 million within the next 12 months or less; $70.8 million within the next 13 to 24 months; and $23.9 million in 25 months or more.

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2023
Business Combinations [Abstract]
Business Combinations	The following acquisition was accounted for as a business combination in accordance with ASC 805 - Business Combinations. The results of the business combination have been included in the Company's Consolidated Financial Statements beginning on the acquisition date. Pro forma financial amounts reflecting the effects of the business combination are not presented, because it was not material to the Company's financial position or results of operations. Acquisitions are also subject to customary adjustments based on, among other things, the amount of cash, debt and working capital in the business as of the closing date. The amounts included in the Consolidated Balance Sheets for these adjustments are considered provisional until final settlement has occurred. The Company had no acquisitions in the three months ended March 31, 2023. In December 2022, the Company's Pacific segment acquired Allied Concrete and Supply Co., a producer of ready-mixed concrete in California. At March 31, 2023, the purchase price allocation was considered preliminary and will be finalized within 12 months of the acquisition date. The total purchase price for the acquisition that occurred in 2022 was $8.9 million, subject to certain adjustments, with cash acquired totaling $2.8 million. The purchase price includes consideration paid of $1.5 million, a $70,000 holdback liability and 273,153 shares of MDU Resources' common stock with a market value of $8.4 million as of the respective acquisition date. Due to the holding period restriction on the common stock, the share consideration was discounted to a fair value of approximately $7.3 million. The amounts allocated to the aggregated assets acquired and liabilities assumed during 2022 were as follows: $1.7 million to current assets; $5.9 million to property, plant and equipment; $200,000 to goodwill; $100,000 to current liabilities; $500,000 to noncurrent liabilities - other; and $1.2 million to deferred tax liabilities. Costs incurred for acquisitions are included in selling, general and administrative expenses on the Consolidated Statements of Operations and were immaterial for both the three months ended March 31, 2023 and 2022.

Goodwill and other intangible a

Goodwill and other intangible assets	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and other intangible assets	The changes in the carrying amount of goodwill were as follows: Balance at January 1, 2023 Goodwill Acquired During the Year Measurement Balance at March 31, 2023 (In thousands) Pacific $ 38,339 $ — $ — $ 38,339 Northwest 90,978 — — 90,978 Mountain 26,816 — — 26,816 North Central 75,879 — — 75,879 All Other 42,528 — — 42,528 Total $ 274,540 $ — $ — $ 274,540 Other amortizable intangible assets were as follows: March 31, 2023 December 31, 2022 (In thousands) Customer relationships $ 18,540 $ 18,540 Less accumulated amortization 7,801 7,367 10,739 11,173 Noncompete agreements 4,039 4,039 Less accumulated amortization 3,113 2,985 926 1,054 Other 2,479 5,279 Less accumulated amortization 1,381 4,076 1,098 1,203 Total $ 12,763 $ 13,430 The previous tables include goodwill and intangible assets associated with the business combination completed during 2022. For more information related to this business combination, see Note 9. Amortization expense for amortizable intangible assets for the three months ended March 31, 2023 and 2022, was $667,000 and $621,000, respectively. Estimated amortization expense for identifiable intangible assets as of March 31, 2023, was: Remainder of 2023 2024 2025 2026 2027 Thereafter (In thousands) Amortization expense $ 1,826 $ 2,361 $ 2,084 $ 1,782 $ 1,759 $ 2,951

Fair value measurements

Fair value measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair value measurements	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The fair value ASC establishes a hierarchy for grouping assets and liabilities, based on the significance of inputs. The estimated fair values of the Company's assets and liabilities measured on a recurring basis are determined using the market approach. The Company measures its investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in income. The Company anticipates using these investments, which consist of insurance contracts, to satisfy its obligations as a participant in MDU Resources' unfunded, nonqualified defined benefit and defined contribution plans for the Company's executive officers and certain key management employees, and invests in these fixed-income and equity securities for the purpose of earning investment returns and capital appreciation. These investments, which totaled $22.4 million and $20.1 million, at March 31, 2023 and December 31, 2022, respectively, are classified as investments on the Consolidated Balance Sheets. The net unrealized gain on these investments was $827,000 for the three months ended March 31, 2023. The net unrealized loss on these investments was $1.0 million for the three months ended March 31, 2022. The change in fair value, which is considered part of the cost of the plan, is classified in other income on the Consolidated Statements of Operations. The Company's assets measured at fair value on a recurring basis were as follows: Fair Value Measurements at March 31, 2023, Using Quoted Prices in Significant Significant Balance at March 31, 2023 (In thousands) Assets: Money market funds $ — $ 2,472 $ — $ 2,472 Insurance contracts* — 22,438 — 22,438 Total assets measured at fair value $ — $ 24,910 $ — $ 24,910 * The insurance contracts invest approximately 61 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 percent in common stock of mid-cap companies, 7 percent in target date investments, 6 percent in common stock of small-cap companies, 2 percent in cash equivalents and 1 percent in international investments. Fair Value Measurements at December 31, 2022, Using Quoted Prices in Significant Significant Balance at December 31, 2022 (In thousands) Assets: Money market funds $ — $ 2,448 $ — $ 2,448 Insurance contracts* — 20,083 — 20,083 Total assets measured at fair value $ — $ 22,531 $ — $ 22,531 * The insurance contracts invest approximately 63 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 percent in common stock of mid-cap companies, 6 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents. The Company’s Level 2 money market funds are valued at the net asset value of shares held at the end of the period, based on published market quotations on active markets, or using other known sources including pricing from outside sources. The estimated fair value of the Company’s Level 2 insurance contracts are based on contractual cash surrender values that are determined primarily by investments in managed separate accounts of the insurer. These amounts approximate fair value. The managed separate accounts are valued based on other observable inputs or corroborated market data. Though the Company believes the methods used to estimate fair value are consistent with those used by other market participants, the use of other methods or assumptions could result in a different estimate of fair value. The Company applies the provisions of the fair value measurement standard to its nonrecurring, non-financial measurements, including long-lived asset impairments. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. The Company reviews the carrying value of its long-lived assets, excluding goodwill, whenever events or changes in circumstances indicate that such carrying amounts may not be recoverable. The Company performed fair value assessments of the assets acquired and liabilities assumed in the business combination that occurred during 2022. The fair value of these assets and liabilities were determined based on Level 2 and Level 3 inputs.

Cash flow information

Cash flow information	3 Months Ended
	Mar. 31, 2023
Supplemental Cash Flow Information [Abstract]
Cash flow information	Cash expenditures for interest and income taxes were as follows: Three Months Ended March 31, 2023 2022 (In thousands) Interest, net $ 7,081 $ 704 Income taxes paid, net $ 150 $ 5 Noncash investing and financing transactions were as follows: March 31, 2023 March 31, 2022 (In thousands) Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,894 $ 2,071 Property, plant and equipment additions in accounts payable $ 2,607 $ 4,921

Business segment data

Business segment data	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Business segment data	The Company focuses on the vertical integration of its products and services by offering customers a single-source for construction materials and related contracting services. The Company operates in 14 states across the United States. Its operating segments include: Pacific, Northwest, Mountain, North Central, South and Energy Services. The operating segments are organized by geographic region in the United States due to the cyclical nature of the construction work performed. The Company’s reportable segments are those that are based on the Company’s method of internal reporting and management of the business and are Pacific, Northwest, Mountain and North Central. The South and Energy Services operating segments do not meet the criteria to be reportable segments and, as such, are combined with its corporate services in All Other. Each segment is led by a segment president that reports to the Company’s chief executive officer who is also the Company’s chief operating decision maker. The Company’s chief operating decision maker evaluates the performance of the segments and allocates resources to them based on EBITDA. All of the reportable segments mine, process and sell construction aggregates (crushed stone and sand and gravel); produce and sell asphalt; and produce and sell ready-mix concrete, as well as vertically integrating its contracting services to support the aggregate-based product lines including heavy-civil construction, asphalt and concrete paving, and site development and grading, and in some segments the manufacturing of prestressed concrete products. Although not common to all locations, All Other includes the sale of cement, production and distribution of modified liquid asphalt, merchandise and other building materials and related services . The information below follows the same accounting policies as described in the audited financial statements and notes included in the Company's Registration Statement on Form 10. Information on the Company's segments was as follows: Three Months Ended March 31, 2023 2022 (In thousands) External operating revenues: Pacific $ 67,787 $ 85,349 Northwest 115,919 104,791 Mountain 60,618 58,469 North Central 20,973 22,824 All Other 42,603 38,533 Total external operating revenues $ 307,900 $ 309,966 Intersegment operating revenues: Pacific $ 11,295 $ 16,148 Northwest 12,932 14,142 Mountain 5,914 4,062 North Central 1,723 1,312 All Other 7,721 10,370 Total intersegment operating revenues $ 39,585 $ 46,034 EBITDA: Pacific $ (3,113) $ 5,433 Northwest 13,138 12,781 Mountain (6,547) (8,042) North Central (23,567) (24,269) All Other 5,981 (4,094) Total segment EBITDA $ (14,108) $ (18,191) A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows: Three Months Ended March 31, 2023 2022 (In thousands) Total reportable segment operating revenues $ 297,161 $ 307,097 Other operating revenues 50,324 48,903 Elimination of intersegment operating revenues (39,585) (46,034) Total consolidated operating revenues $ 307,900 $ 309,966 A reconciliation of reportable segment EBITDA to consolidated loss before income taxes is as follows: Three Months Ended March 31, 2023 2022 (In thousands) Total EBITDA for reportable segments $ (20,089) $ (14,097) Other EBITDA 5,981 (4,094) Depreciation, depletion and amortization 29,629 28,350 Interest 9,495 5,266 Total consolidated loss before income taxes $ (53,232) $ (51,807)

Employee benefit plans

Employee benefit plans	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Employee benefit plans	Pension and other postretirement plans The Company has noncontributory qualified defined benefit pension plans and other postretirement benefit plans for certain eligible employees and also participates in other postretirement benefit plans of MDU Resources. Components of net periodic benefit cost for the Company's pension benefit plans were as follows: Three Months Ended March 31, 2023 2022 (In thousands) Components of net periodic benefit cost: Interest cost $ 408 $ 282 Expected return on assets (450) (493) Amortization of net actuarial loss 128 214 Net periodic benefit cost $ 86 $ 3 Components of net periodic benefit cost for the Company's other postretirement benefit plans were as follows: Three Months Ended March 31, 2023 2022 (In thousands) Components of net periodic benefit cost: Service cost $ 89 $ 131 Interest cost 181 128 Expected return on assets 7 (3) Amortization of prior service credit (20) (20) Amortization of net actuarial (gain) loss (45) 88 Net periodic benefit cost $ 212 $ 324 The components of net periodic benefit cost, other than the service cost component, are included in other income on the Consolidated Statements of Operations. The service cost component is included in selling, general and administrative expenses on the Consolidated Statements of Operations.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Contingencies	The Company is party to claims and lawsuits arising out of its business and that of its consolidated subsidiaries, which may include, but are not limited to, matters involving property damage, personal injury, and environmental, contractual and statutory obligations. The Company accrues a liability for those contingencies when the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. Accruals are based on the best information available, but in certain situations management is unable to estimate an amount or range of a reasonably possible loss including, but not limited to when: (1) the damages are unsubstantiated or indeterminate, (2) the proceedings are in the early stages, (3) numerous parties are involved, or (4) the matter involves novel or unsettled legal theories. At March 31, 2023 and December 31, 2022, the Company accrued contingent liabilities, which have not been discounted, of $2.0 million and $1.0 million, respectively. At March 31, 2023 and December 31, 2022, the Company also recorded corresponding insurance receivables of $1.3 million and $325,000, respectively, related to the accrued liabilities. The accruals are for contingencies resulting from litigation and environmental matters. This includes amounts that have been accrued for matters discussed in Environmental matters within this note. Most of these claims and lawsuits are covered by insurance, thus the Company's exposure is typically limited to its deductible amount. The Company will continue to monitor each matter and adjust accruals as might be warranted based on new information and further developments. Management believes that the outcomes with respect to probable and reasonably possible losses in excess of the amounts accrued, net of insurance recoveries, while uncertain, either cannot be estimated or will not have a material effect upon the Company's financial position, results of operations or cash flows. Unless otherwise required by GAAP, legal costs are expensed as they are incurred. Environmental matters The Company is a party to claims for the cleanup of a superfund site in Portland, Oregon. There were no material changes to the Company's environmental matters that were previously reported in the audited financial statements and notes included in the Company's Registration Statement on Form 10. Guarantees Certain subsidiaries of the Company have outstanding guarantees to third parties that guarantee their performance. These guarantees are related to contracts for contracting services, insurance deductibles and loss limits, and certain other guarantees. At March 31, 2023, the fixed maximum amounts guaranteed under these agreements aggregated to $11.5 million, all of which has no scheduled maturity date. Certain of the guarantees also have no fixed maximum amounts specified. There were no amounts outstanding under the previously mentioned guarantees at March 31, 2023. In the event of default under these guarantee obligations, the subsidiary issuing the guarantee for that particular obligation would be required to make payments under its guarantee. Certain subsidiaries of the Company have outstanding letters of credit to third parties related to insurance policies, cement purchases and other agreements. At March 31, 2023, the fixed maximum amounts guaranteed under these letters of credit aggregated $4.9 million. At March 31, 2023, the amounts of scheduled expiration of the maximum amounts guaranteed under these letters of credit aggregate to $4.6 million in 2023 and $332,000 in 2024. There were no amounts outstanding under the previously mentioned letters of credit at March 31, 2023. In the event of default under these letter of credit obligations, the subsidiary guaranteeing the letter of credit would be obligated for reimbursement of payments made under the letter of credit. In addition, Centennial has issued guarantees to third parties related to the routine purchase of materials for which no fixed maximum amounts have been specified. These guarantees have no scheduled maturity date. These guarantees include the performance of Centennial's subsidiaries. If a subsidiary, including the Company, were to default under the obligations of the agreement, Centennial would be required to make payments under the guarantee. There were no amounts outstanding as of March 31, 2023. In the normal course of business, the Company has surety bonds related to contracts for contracting services and reclamation obligations of its subsidiaries. In the event a subsidiary of the Company does not fulfill a bonded obligation, the Company would be responsible to the surety bond company for completion of the bonded contract or obligation. A large portion of the surety bonds is expected to expire within the next 12 months; however, the Company will likely continue to enter into surety bonds for its subsidiaries in the future. At March 31, 2023, approximately $822.7 million of surety bonds were outstanding, which were not reflected on the Consolidated Balance Sheet.

Related Party Disclosures

Related Party Disclosures	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions Disclosure	Allocation of corporate expenses Centennial and MDU Resources provide expense allocations for corporate services provided to the Company, including costs related to senior management, legal, human resources, finance and accounting, treasury, information technology, communications, procurement, tax, insurance and other shared services. Some of these services will continue to be provided by Centennial and MDU Resources on a temporary basis after the separation is completed under a transition services agreement. For the three months ended March 31, 2023 and 2022, the Company was allocated $4.6 million and $4.9 million, respectively, for these corporate services. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on the basis of percent of total capital invested, the percent of total average commercial paper borrowings at Centennial or other allocation methodologies that are considered to be a reasonable reflection of the utilization of the services provided to the benefits received, including the following: Number of employees paid and stated as cost per check; number of employees served; weighted factor of travel, managed units, national account spending, equipment and fleet acquisitions; purchase order dollars spent and purchase order line count; number of payments, vouchers or unclaimed property reports; labor hours; time tracked; and projected workload. Management believes these cost allocations are a reasonable reflection of the utilization of services provided to, or the benefit derived by, the Company during the periods presented. The allocations may not, however, be indicative of the actual expenses that would have been incurred had the Company operated as a stand-alone public company. Actual costs that would have been incurred if the Company had been a stand-alone public company would depend on a number of factors, including the chosen organizational structure, whether functions were outsourced or performed by Company employees, and strategic decisions made in areas such as selling and marketing, information technology and infrastructure. See Note 2 for further information. Cash management and financing Centennial has a central cash management and financing program in which the Company participates. Through the use of these programs, Centennial is able to more effectively direct and manage the daily cash requirements and financing needs for each wholly owned subsidiaries through the consolidation of all cash activity. As cash is received and disbursed by Centennial, it is accounted for by the Company through related-party receivables and payables. The Company has related-party note agreements in place with Centennial for the financing of its capital needs. Centennial has committed to continue funding the Company through the central cash management and financing program to allow the Company to meet its obligations as they become due for at least one year and a day following the date that the consolidated financial statements are issued. As discussed in Note 2, MDU Resources announced plans to pursue a separation of the Company from MDU Resources. Upon separation, the Company plans to rely on its own credit. Interest expense in the Consolidated Statements of Operations reflects the allocation of interest on borrowing and funding related to these note agreements. The Company’s cash that was not included in the central cash management program is classified as cash and cash equivalents on the Consolidated Balance Sheets. Related-party notes payable Centennial enters into short-term and long-term borrowing arrangements for the benefit of certain subsidiaries of the Company. The Company has access to borrowings by participation in Centennial's commercial paper program, as well as a centralized cash management program at Centennial. These borrowings have been included in both current and noncurrent liabilities in related-party notes payable in the Consolidated Balance Sheets. Related-party short-term and long-term borrowing arrangements were as follows: Weighted average interest rate at March 31, 2023 March 31, 2023 December 31, 2022 (In thousands) Centennial's term loan agreements with maturities ranging from September 15, 2023 to December 18, 2023 5.96 % $ 208,000 $ 208,000 Centennial's senior notes with maturities ranging from June 27, 2023 to April 4, 2034 4.34 % 410,000 410,000 Borrowing arrangement under Centennial's commercial paper program, supported by Centennial’s credit agreements 6.30 % 165,599 66,449 Credit agreement due on December 19, 2024 8.05 % 32,461 — Total related-party notes payable 816,060 684,449 Less: current maturities 238,000 238,000 Net related-party notes payable $ 578,060 $ 446,449 The amounts of scheduled related-party notes payable maturities for the five years and thereafter following March 31, 2023, aggregate $238.0 million for the remainder of 2023; $198.1 million in 2024; $10.0 million in 2025; $0 in 2026; $65.0 million in 2027 and $305.0 million thereafter. Certain debt instruments of Centennial, including those discussed below, contain restrictive covenants and cross-default provisions. In order to borrow under the respective credit agreements Centennial and its subsidiaries must be in compliance with the applicable covenants and certain other conditions. In the event Centennial and its subsidiaries do not comply with the applicable covenants and other conditions, alternative sources of funding may need to be pursued. Centennial's revolving credit agreement contains customary covenants and provisions, including a covenant of Centennial not to permit, as of the end of any fiscal quarter, the ratio of total consolidated debt to total consolidated capitalization to be greater than 65 percent. Other covenants include restricted payments, restrictions on the sale of certain assets, limitations on subsidiary indebtedness, minimum consolidated net worth, limitations on priority debt and the making of certain loans and investments. Certain of Centennial's financing agreements contain cross-default provisions. These provisions state that if Centennial or any subsidiary of Centennial fails to make any payment with respect to any indebtedness or contingent obligation, in excess of a specified amount, under any agreement that causes such indebtedness to be due prior to its stated maturity or the contingent obligation to become payable, the applicable agreements will be in default. Related-party transactions The Company provides contracting services to MDU Resources and affiliated companies. The amount charged for these services was $131,000 and $130,000 as of March 31, 2023 and 2022, respectively. Related-party transactions that are expected to be settled in cash have been included as related-party receivables or payables in the Consolidated Balance Sheets. Related-party transactions that are not expected to be settled in cash have been included within Other paid-in capital in the Consolidated Balance Sheets. See Note 2 for further information.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	On April 25, 2023, Knife River Holding Company issued $425.0 million of 7.75 percent senior notes due May 1, 2031, pursuant to an indenture agreement. The proceeds from the issuance of these notes will be held in escrow until the effective date of the Knife River separation, or if the separation does not occur within the time frame specified, released back to the lenders, along with accrued interest. On May 3, 2023, MDU Resources' board of directors approved the separation and the distribution of approximately 90 percent of the issued and outstanding shares of the Company to MDU Resources' stockholders. Stockholders of MDU Resources will receive one share of the Company's common stock for every four shares of MDU Resources' common stock held on May 22, 2023, the record date for the distribution. MDU Resources will retain approximately 10 percent of the Company's common stock immediately following the separation with the intent to dispose of such shares within twelve months after the separation. Prior to completing the separation, MDU Resources may adjust the percentage of the Company's common stock to be distributed to MDU Resources' stockholders and retained by MDU Resources in response to market and other factors. On May 10, 2023, the SEC declared the Registration Statement for Knife River Holding Company effective. The separation is expected to be complete on May 31, 2023, subject to certain conditions.

Basis of presentation (Policies

Basis of presentation (Policies)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	The accompanying consolidated interim financial statements were prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Interim financial statements do not include all disclosures provided in annual financial statements and, accordingly, these financial statements should be read in conjunction with the Form 10. The information is unaudited but includes adjustments that are, in the opinion of management, necessary for a fair presentation of the accompanying consolidated interim financial statements and are of a normal recurring nature. Knife River has historically operated as a wholly owned subsidiary of Centennial and an indirect, wholly owned subsidiary of MDU Resources and not as a stand-alone company. The accompanying consolidated financial statements and footnotes, which were prepared on a “carve-out” basis in connection with the expected separation, were derived from the consolidated financial statements of MDU Resources as if the Company operated on a stand-alone basis during the periods presented, and were prepared utilizing the legal entity approach in conformity with GAAP. The Company utilized allocations and carve-out methodologies to prepare its consolidated financial statements. The consolidated financial statements herein may not be indicative of the Company's future performance or actual expenses that would have been incurred as a stand-alone company for the periods presented. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements included in the Company's Registration Statement on Form 10. All revenues and costs, as well as assets and liabilities, directly associated with the business activity of the Company are included in the consolidated financial statements. The consolidated financial statements also include expense allocations for certain functions provided by MDU Resources and Centennial, including, but not limited to certain general corporate expenses related to senior management, legal, human resources, finance and accounting, treasury, information technology, communications, procurement, tax, insurance and other shared services. These general corporate expenses are included in the Consolidated Statements of Operations within selling, general and administrative expenses. The amounts allocated were $4.6 million and $4.9 million for the three months ended March 31, 2023 and 2022, respectively. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder principally allocated on the basis of percent of total capital invested or other allocation methodologies that are considered to be a reasonable reflection of the utilization of the services provided to the benefits received. Following the separation from MDU Resources, the Company may perform certain functions using its own resources or contracted services. For an interim period following the separation, however, some of these functions will continue to be provided by MDU Resources under a transition services agreement. Historically, Knife River has participated in Centennial’s centralized cash management program, including its overall financing arrangements. Knife River has related-party note agreements in place with Centennial for the financing of its capital needs, which are reflected as related-party notes payable on the Consolidated Balance Sheets. Interest expense in the Consolidated Statements of Operations reflects the allocation of interest on borrowing and funding associated with the related-party note agreements. MDU Resources maintains various benefit and stock-based compensation plans at a corporate level while certain defined pension benefit plans are maintained at a subsidiary level. The Company’s employees participate in these aforementioned plans and the costs associated with its employees are included in the Company’s consolidated financial statements, as well as any net benefit plan assets or obligations. Management has also evaluated the impact of events occurring after March 31, 2023, up to the date of issuance of these consolidated interim financial statements on May 16, 2023, that would require recognition or disclosure in the Consolidated Financial Statements. For more information on subsequent events, see Note 17.
Consolidation, Policy	The consolidated financial statements were prepared in accordance with GAAP and include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying consolidated financial statements. Related-party transactions between the Company and MDU Resources or Centennial for general operating activities and intercompany debt have been included in the consolidated financial statements. These related-party transactions have historically been settled in cash and are reflected in the Consolidated Balance Sheets as “Due from related-party” or “Due to related-party” with the aggregate net effect reflected in the Consolidated Statements of Cash Flows within operating activities and “Related-party notes payable” with the aggregate net effect reflected in the Consolidated Statements of Cash Flows within financing activities. The aggregate net effect of related-party transactions not settled in cash have been reflected in the Consolidated Balance Sheets within “Other paid-in capital” and in the Consolidated Statements of Cash Flows as “Net transfers to Parent” in financing activities. See Note 16 for additional information on related-party transactions.
Use of Estimates, Policy	The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates are used for items such as long-lived assets and goodwill; fair values of acquired assets and liabilities under the acquisition method of accounting; aggregate reserves; property depreciable lives; tax provisions; revenue recognized using the cost-to-cost measure of progress for contracts; expected credit losses; environmental and other loss contingencies; costs on contracting services contracts; actuarially determined benefit costs; asset retirement obligations; lease classification; present value of right-of-use assets and lease liabilities; and the valuation of stock-based compensation. These estimates are based on management’s best knowledge of current events, historical experience, actions that the Company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As additional information becomes available, or actual amounts are determinable, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates.
New accounting standards	There have been no recent accounting standards that are expected to materially affect the Company.

Receivables and allowance for_2

Receivables and allowance for expected credit losses (Policies)	3 Months Ended
	Mar. 31, 2023
Credit Loss [Abstract]
Accounts receivable and allowance for doubtful accounts	Receivables consist primarily of trade and contracting services contract receivables for the sale of goods and services net of expected credit losses. A majority of the Company's receivables are due in 30 days or less.
Expected credit loss	The Company's expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics; current conditions; and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses. Risk characteristics used by the Company may include customer mix, knowledge of customers and general economic conditions of the various local economies, among others. Specific account balances are written off when management determines the amounts to be uncollectible.

Revenue from contracts with c_2

Revenue from contracts with customers (Policies)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue from contracts with customers	Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.

Business Combinations (Policies

Business Combinations (Policies)	3 Months Ended
	Mar. 31, 2023
Business Combinations [Abstract]
Business Combinations Policy	The following acquisition was accounted for as a business combination in accordance with ASC 805 - Business Combinations. The results of the business combination have been included in the Company's Consolidated Financial Statements beginning on the acquisition date. Pro forma financial amounts reflecting the effects of the business combination are not presented, because it was not material to the Company's financial position or results of operations.

Fair value disclosures (Policie

Fair value disclosures (Policies)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair value measurements	The Company measures its investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in income.

Business segment data (Policies

Business segment data (Policies)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Business segment data	The Company’s reportable segments are those that are based on the Company’s method of internal reporting and management of the business and are Pacific, Northwest, Mountain and North Central. The South and Energy Services operating segments do not meet the criteria to be reportable segments and, as such, are combined with its corporate services in All Other. Each segment is led by a segment president that reports to the Company’s chief executive officer who is also the Company’s chief operating decision maker. The Company’s chief operating decision maker evaluates the performance of the segments and allocates resources to them based on EBITDA.

Contingencies (Policies)

Contingencies (Policies)	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Contingencies	The Company is party to claims and lawsuits arising out of its business and that of its consolidated subsidiaries, which may include, but are not limited to, matters involving property damage, personal injury, and environmental, contractual and statutory obligations. The Company accrues a liability for those contingencies when the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. Accruals are based on the best information available, but in certain situations management is unable to estimate an amount or range of a reasonably possible loss including, but not limited to when: (1) the damages are unsubstantiated or indeterminate, (2) the proceedings are in the early stages, (3) numerous parties are involved, or (4) the matter involves novel or unsettled legal theories.

Receivables and allowance for_3

Receivables and allowance for expected credit losses (Tables)	3 Months Ended
	Mar. 31, 2023
Credit Loss [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Receivables were as follows: March 31, 2023 December 31, 2022 (In thousands) Trade receivables $ 100,487 $ 104,347 Contracting services contract receivables 52,487 82,428 Retention receivables 27,438 28,859 Receivables, gross 180,412 215,634 Less expected credit loss 5,822 5,477 Receivables, net $ 174,590 $ 210,157
Accounts Receivable, Allowance for Credit Loss	Details of the Company's expected credit losses were as follows: Pacific Northwest Mountain North All Other Total (In thousands) At December 31, 2022 $ 2,045 $ 1,253 $ 1,278 $ 839 $ 62 $ 5,477 Current expected credit loss provision 45 313 164 (89) (1) 432 Less write-offs charged against the allowance 1 68 18 — — 87 At March 31, 2023 $ 2,089 $ 1,498 $ 1,424 $ 750 $ 61 $ 5,822 Pacific Northwest Mountain North All Other Total (In thousands) At December 31, 2021 $ 2,052 $ 512 $ 1,610 $ 1,152 $ 80 $ 5,406 Current expected credit loss provision 1 (125) (130) 6 (5) (253) Less write-offs charged against the allowance 1 20 4 1 1 27 At March 31, 2022 $ 2,052 $ 367 $ 1,476 $ 1,157 $ 74 $ 5,126

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories on the Consolidated Balance sheets were as follows: March 31, 2023 December 31, 2022 (In thousands) Finished products $ 220,234 $ 211,496 Raw materials 114,735 78,571 Supplies and parts 38,246 33,210 Total $ 373,215 $ 323,277

Accumulated other comprehensi_2

Accumulated other comprehensive loss (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Accumulated comprehensive loss	The after-tax changes in the components of accumulated other comprehensive loss were as follows: Net Unrealized Postretirement Total (In thousands) At December 31, 2022 $ (90) $ (12,262) $ (12,352) Amounts reclassified from accumulated other comprehensive loss 46 47 93 Net current-period other comprehensive income 46 47 93 At March 31, 2023 $ (44) $ (12,215) $ (12,259) Net Unrealized Postretirement Total (In thousands) At December 31, 2021 $ (418) $ (24,072) $ (24,490) Amounts reclassified from accumulated other comprehensive loss 82 221 303 Net current-period other comprehensive income 82 221 303 At March 31, 2022 $ (336) $ (23,851) $ (24,187)
Reclassification out of accumulated other comprehensive loss	The following amounts were reclassified out of accumulated other comprehensive loss into net loss. The amounts presented in parenthesis indicate a decrease to net loss on the Consolidated Statements of Operations. The reclassifications were as follows: Three Months Ended Location on Consolidated Statements of Operations March 31, 2023 2022 (In thousands) Reclassification adjustment for loss on derivative instruments included in net loss $ (61) $ (109) Interest expense 15 27 Income taxes (46) (82) Amortization of postretirement liability losses included in net periodic benefit cost (62) (292) Other income 15 71 Income taxes (47) (221) Total reclassifications $ (93) $ (303)

Revenue from contracts with c_3

Revenue from contracts with customers (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	Presented in the following tables are the sales of materials to both third parties and internal customers. Due to consolidation requirements, the internal sales revenues must be eliminated against the construction materials product used in downstream materials and contracting services to arrive at the external operating revenues. Three Months Ended March 31, 2023 Pacific Northwest Mountain North All Other Total (In thousands) Aggregates $ 18,697 $ 42,573 $ 9,667 $ 4,020 $ 8,564 $ 83,521 Ready-mix concrete 26,144 33,905 14,370 12,287 10,063 96,769 Asphalt 1,316 6,927 810 169 4,397 13,619 Other 26,055 2,682 2 1,585 8,269 38,593 Contracting services public-sector 3,971 17,003 28,238 4,526 18,334 72,072 Contracting services private-sector 2,899 25,761 13,445 109 697 42,911 Internal sales (11,295) (12,932) (5,914) (1,723) (7,721) (39,585) Revenues from contracts with customers $ 67,787 $ 115,919 $ 60,618 $ 20,973 $ 42,603 $ 307,900 Three Months Ended March 31, 2022 Pacific Northwest Mountain North All Other Total (In thousands) Aggregates $ 19,063 $ 33,672 $ 9,211 $ 4,000 $ 11,701 $ 77,647 Ready-mix concrete 30,055 36,323 16,170 12,357 13,593 108,498 Asphalt 4,471 8,411 331 46 4,827 18,086 Other 26,890 3,283 5 2,152 5,171 37,501 Contracting services public-sector 9,296 16,911 22,403 5,520 13,043 67,173 Contracting services private-sector 11,722 20,333 14,411 61 568 47,095 Internal sales (16,148) (14,142) (4,062) (1,312) (10,370) (46,034) Revenues from contracts with customers $ 85,349 $ 104,791 $ 58,469 $ 22,824 $ 38,533 $ 309,966

Uncompleted contracts (Tables)

Uncompleted contracts (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract balances	The changes in contract assets and liabilities were as follows: March 31, 2023 December 31, 2022 Change Location on Consolidated Balance Sheets (In thousands) Contract assets $ 30,974 $ 31,145 $ (171) Costs and estimated earnings in excess of billings on uncompleted contracts Contract liabilities (37,375) (39,843) 2,468 Billings in excess of costs and estimated earnings on uncompleted contracts Net contract liabilities $ (6,401) $ (8,698) $ 2,297

Goodwill and other intangible_2

Goodwill and other intangible assets (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill were as follows: Balance at January 1, 2023 Goodwill Acquired During the Year Measurement Balance at March 31, 2023 (In thousands) Pacific $ 38,339 $ — $ — $ 38,339 Northwest 90,978 — — 90,978 Mountain 26,816 — — 26,816 North Central 75,879 — — 75,879 All Other 42,528 — — 42,528 Total $ 274,540 $ — $ — $ 274,540
Other amortizable intangible assets	Other amortizable intangible assets were as follows: March 31, 2023 December 31, 2022 (In thousands) Customer relationships $ 18,540 $ 18,540 Less accumulated amortization 7,801 7,367 10,739 11,173 Noncompete agreements 4,039 4,039 Less accumulated amortization 3,113 2,985 926 1,054 Other 2,479 5,279 Less accumulated amortization 1,381 4,076 1,098 1,203 Total $ 12,763 $ 13,430
Estimated amortization expense	Estimated amortization expense for identifiable intangible assets as of March 31, 2023, was: Remainder of 2023 2024 2025 2026 2027 Thereafter (In thousands) Amortization expense $ 1,826 $ 2,361 $ 2,084 $ 1,782 $ 1,759 $ 2,951

Fair value measurements (Tables

Fair value measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Assets and liabilities measured at fair value on a recurring basis	The Company's assets measured at fair value on a recurring basis were as follows: Fair Value Measurements at March 31, 2023, Using Quoted Prices in Significant Significant Balance at March 31, 2023 (In thousands) Assets: Money market funds $ — $ 2,472 $ — $ 2,472 Insurance contracts* — 22,438 — 22,438 Total assets measured at fair value $ — $ 24,910 $ — $ 24,910 * The insurance contracts invest approximately 61 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 percent in common stock of mid-cap companies, 7 percent in target date investments, 6 percent in common stock of small-cap companies, 2 percent in cash equivalents and 1 percent in international investments. Fair Value Measurements at December 31, 2022, Using Quoted Prices in Significant Significant Balance at December 31, 2022 (In thousands) Assets: Money market funds $ — $ 2,448 $ — $ 2,448 Insurance contracts* — 20,083 — 20,083 Total assets measured at fair value $ — $ 22,531 $ — $ 22,531 * The insurance contracts invest approximately 63 percent in fixed-income investments, 15 percent in common stock of large-cap companies, 8 percent in common stock of mid-cap companies, 6 percent in common stock of small-cap companies, 6 percent in target date investments and 2 percent in cash equivalents.

Cash flow information (Tables)

Cash flow information (Tables)	3 Months Ended
	Mar. 31, 2023
Supplemental Cash Flow Information [Abstract]
Cash expenditures for interest and income taxes and noncash investing and financing transactions	Cash expenditures for interest and income taxes were as follows: Three Months Ended March 31, 2023 2022 (In thousands) Interest, net $ 7,081 $ 704 Income taxes paid, net $ 150 $ 5 Noncash investing and financing transactions were as follows: March 31, 2023 March 31, 2022 (In thousands) Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,894 $ 2,071 Property, plant and equipment additions in accounts payable $ 2,607 $ 4,921

Business segment data (Tables)

Business segment data (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Information on the Company's businesses	Information on the Company's segments was as follows: Three Months Ended March 31, 2023 2022 (In thousands) External operating revenues: Pacific $ 67,787 $ 85,349 Northwest 115,919 104,791 Mountain 60,618 58,469 North Central 20,973 22,824 All Other 42,603 38,533 Total external operating revenues $ 307,900 $ 309,966 Intersegment operating revenues: Pacific $ 11,295 $ 16,148 Northwest 12,932 14,142 Mountain 5,914 4,062 North Central 1,723 1,312 All Other 7,721 10,370 Total intersegment operating revenues $ 39,585 $ 46,034 EBITDA: Pacific $ (3,113) $ 5,433 Northwest 13,138 12,781 Mountain (6,547) (8,042) North Central (23,567) (24,269) All Other 5,981 (4,094) Total segment EBITDA $ (14,108) $ (18,191)
Reconciliation of Revenue from Segments to Consolidated	A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows: Three Months Ended March 31, 2023 2022 (In thousands) Total reportable segment operating revenues $ 297,161 $ 307,097 Other operating revenues 50,324 48,903 Elimination of intersegment operating revenues (39,585) (46,034) Total consolidated operating revenues $ 307,900 $ 309,966
Segment, Reconciliation of Other Items from Segments to Consolidated	A reconciliation of reportable segment EBITDA to consolidated loss before income taxes is as follows: Three Months Ended March 31, 2023 2022 (In thousands) Total EBITDA for reportable segments $ (20,089) $ (14,097) Other EBITDA 5,981 (4,094) Depreciation, depletion and amortization 29,629 28,350 Interest 9,495 5,266 Total consolidated loss before income taxes $ (53,232) $ (51,807)

Employee benefit plans (Tables)

Employee benefit plans (Tables)	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Schedule of net benefit costs	Components of net periodic benefit cost for the Company's pension benefit plans were as follows: Three Months Ended March 31, 2023 2022 (In thousands) Components of net periodic benefit cost: Interest cost $ 408 $ 282 Expected return on assets (450) (493) Amortization of net actuarial loss 128 214 Net periodic benefit cost $ 86 $ 3 Components of net periodic benefit cost for the Company's other postretirement benefit plans were as follows: Three Months Ended March 31, 2023 2022 (In thousands) Components of net periodic benefit cost: Service cost $ 89 $ 131 Interest cost 181 128 Expected return on assets 7 (3) Amortization of prior service credit (20) (20) Amortization of net actuarial (gain) loss (45) 88 Net periodic benefit cost $ 212 $ 324

Related Party Disclosures (Tabl

Related Party Disclosures (Tables)	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Related-party short-term and long-term borrowing arrangements were as follows: Weighted average interest rate at March 31, 2023 March 31, 2023 December 31, 2022 (In thousands) Centennial's term loan agreements with maturities ranging from September 15, 2023 to December 18, 2023 5.96 % $ 208,000 $ 208,000 Centennial's senior notes with maturities ranging from June 27, 2023 to April 4, 2034 4.34 % 410,000 410,000 Borrowing arrangement under Centennial's commercial paper program, supported by Centennial’s credit agreements 6.30 % 165,599 66,449 Credit agreement due on December 19, 2024 8.05 % 32,461 — Total related-party notes payable 816,060 684,449 Less: current maturities 238,000 238,000 Net related-party notes payable $ 578,060 $ 446,449

Background (Details)

Background (Details) - Subsequent Event [Member]	May 03, 2023
Spin Distribution Percentages [Line Items]
Percent of Shares Distributed in Conjunction with Spinoff	90%
Percent of Shares, Retained by Parent, in Conjunction with Spinoff	10%

Basis of presentation (Details)

Basis of presentation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Costs and Expenses, Related Party	$ 4.6	$ 4.9

Receivables and allowance for_4

Receivables and allowance for expected credit losses (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Credit Loss [Abstract]
Accounts Receivable, Noncurrent, 90 Days or More Past Due, Still Accruing	$ 13.7	$ 11.2

Receivables and allowance for_5

Receivables and allowance for expected credit losses (Details 2) - Trade Accounts Receivable - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	$ 100,487	$ 104,347
Contracting services contract receivables	52,487	82,428
Retention receivables	27,438	28,859
Receivables, gross	180,412	215,634
Less expected credit loss	5,822	5,477	$ 5,126	$ 5,406
Receivables, net	$ 174,590	$ 210,157

Receivables and allowance for_6

Receivables and allowance for expected credit losses (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Provision for credit losses	$ 428	$ (253)
Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	5,477	5,406
Provision for credit losses	432	(253)
Less write-offs charged against the allowance	87	27
Balance	5,822	5,126
Pacific | Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	2,045	2,052
Provision for credit losses	45	1
Less write-offs charged against the allowance	1	1
Balance	2,089	2,052
Northwest | Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	1,253	512
Provision for credit losses	313	(125)
Less write-offs charged against the allowance	68	20
Balance	1,498	367
Mountain | Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	1,278	1,610
Provision for credit losses	164	(130)
Less write-offs charged against the allowance	18	4
Balance	1,424	1,476
North Central | Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	839	1,152
Provision for credit losses	(89)	6
Less write-offs charged against the allowance	0	1
Balance	750	1,157
All Other | Trade Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	62	80
Provision for credit losses	(1)	(5)
Less write-offs charged against the allowance	0	1
Balance	$ 61	$ 74

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished products	$ 220,234	$ 211,496
Raw materials	114,735	78,571
Supplies and parts	38,246	33,210
Total	$ 373,215	$ 323,277

Accumulated other comprehensi_3

Accumulated other comprehensive loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accumulated other comprehensive loss [Roll Forward]
Balance	$ 1,028,589	$ 952,844
Other comprehensive income (loss)	93	303
Balance	974,769	897,035
Net unrealized loss on derivative instruments qualifying as hedges
Accumulated other comprehensive loss [Roll Forward]
Balance	(90)	(418)
Amounts reclassified from accumulated other comprehensive loss	46	82
Other comprehensive income (loss)	46	82
Balance	(44)	(336)
Postretirement liability adjustment
Accumulated other comprehensive loss [Roll Forward]
Balance	(12,262)	(24,072)
Amounts reclassified from accumulated other comprehensive loss	47	221
Other comprehensive income (loss)	47	221
Balance	(12,215)	(23,851)
Total accumulated other comprehensive loss
Accumulated other comprehensive loss [Roll Forward]
Balance	(12,352)	(24,490)
Amounts reclassified from accumulated other comprehensive loss	93	303
Other comprehensive income (loss)	93	303
Balance	$ (12,259)	$ (24,187)

Reclassification out of accumul

Reclassification out of accumulated other comprehensive loss (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification adjustment out of accumulated other comprehensive loss [Line Items]
Interest expense	$ (9,495)	$ (5,266)
Income Tax Expense (Benefit)	11,912	11,797
Other income	826	(1,936)
Net loss	(41,320)	(40,010)
Reclassification out of accumulated other comprehensive loss
Reclassification adjustment out of accumulated other comprehensive loss [Line Items]
Net loss	(93)	(303)
Reclassification adjustment for loss on derivative instruments included in net loss | Reclassification out of accumulated other comprehensive loss | Interest rate contract
Reclassification adjustment out of accumulated other comprehensive loss [Line Items]
Interest expense	(61)	(109)
Income Tax Expense (Benefit)	15	27
Net loss	(46)	(82)
Amortization of postretirement liability losses included in net periodic benefit cost | Reclassification out of accumulated other comprehensive loss
Reclassification adjustment out of accumulated other comprehensive loss [Line Items]
Income Tax Expense (Benefit)	15	71
Other income	(62)	(292)
Net loss	$ (47)	$ (221)

Disaggregation of revenue (Deta

Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue:	$ 307,900	$ 309,966
Aggregates
Disaggregation of Revenue [Line Items]
Revenue:	83,521	77,647
Ready-mix concrete
Disaggregation of Revenue [Line Items]
Revenue:	96,769	108,498
Asphalt
Disaggregation of Revenue [Line Items]
Revenue:	13,619	18,086
Other
Disaggregation of Revenue [Line Items]
Revenue:	38,593	37,501
Contracting services public-sector
Disaggregation of Revenue [Line Items]
Revenue:	72,072	67,173
Contracting services private-sector
Disaggregation of Revenue [Line Items]
Revenue:	42,911	47,095
Internal sales
Disaggregation of Revenue [Line Items]
Revenue:	(39,585)	(46,034)
Pacific
Disaggregation of Revenue [Line Items]
Revenue:	67,787	85,349
Pacific | Aggregates
Disaggregation of Revenue [Line Items]
Revenue:	18,697	19,063
Pacific | Ready-mix concrete
Disaggregation of Revenue [Line Items]
Revenue:	26,144	30,055
Pacific | Asphalt
Disaggregation of Revenue [Line Items]
Revenue:	1,316	4,471
Pacific | Other
Disaggregation of Revenue [Line Items]
Revenue:	26,055	26,890
Pacific | Contracting services public-sector
Disaggregation of Revenue [Line Items]
Revenue:	3,971	9,296
Pacific | Contracting services private-sector
Disaggregation of Revenue [Line Items]
Revenue:	2,899	11,722
Pacific | Internal sales
Disaggregation of Revenue [Line Items]
Revenue:	(11,295)	(16,148)
Northwest
Disaggregation of Revenue [Line Items]
Revenue:	115,919	104,791
Northwest | Aggregates
Disaggregation of Revenue [Line Items]
Revenue:	42,573	33,672
Northwest | Ready-mix concrete
Disaggregation of Revenue [Line Items]
Revenue:	33,905	36,323
Northwest | Asphalt
Disaggregation of Revenue [Line Items]
Revenue:	6,927	8,411
Northwest | Other
Disaggregation of Revenue [Line Items]
Revenue:	2,682	3,283
Northwest | Contracting services public-sector
Disaggregation of Revenue [Line Items]
Revenue:	17,003	16,911
Northwest | Contracting services private-sector
Disaggregation of Revenue [Line Items]
Revenue:	25,761	20,333
Northwest | Internal sales
Disaggregation of Revenue [Line Items]
Revenue:	(12,932)	(14,142)
Mountain
Disaggregation of Revenue [Line Items]
Revenue:	60,618	58,469
Mountain | Aggregates
Disaggregation of Revenue [Line Items]
Revenue:	9,667	9,211
Mountain | Ready-mix concrete
Disaggregation of Revenue [Line Items]
Revenue:	14,370	16,170
Mountain | Asphalt
Disaggregation of Revenue [Line Items]
Revenue:	810	331
Mountain | Other
Disaggregation of Revenue [Line Items]
Revenue:	2	5
Mountain | Contracting services public-sector
Disaggregation of Revenue [Line Items]
Revenue:	28,238	22,403
Mountain | Contracting services private-sector
Disaggregation of Revenue [Line Items]
Revenue:	13,445	14,411
Mountain | Internal sales
Disaggregation of Revenue [Line Items]
Revenue:	(5,914)	(4,062)
North Central
Disaggregation of Revenue [Line Items]
Revenue:	20,973	22,824
North Central | Aggregates
Disaggregation of Revenue [Line Items]
Revenue:	4,020	4,000
North Central | Ready-mix concrete
Disaggregation of Revenue [Line Items]
Revenue:	12,287	12,357
North Central | Asphalt
Disaggregation of Revenue [Line Items]
Revenue:	169	46
North Central | Other
Disaggregation of Revenue [Line Items]
Revenue:	1,585	2,152
North Central | Contracting services public-sector
Disaggregation of Revenue [Line Items]
Revenue:	4,526	5,520
North Central | Contracting services private-sector
Disaggregation of Revenue [Line Items]
Revenue:	109	61
North Central | Internal sales
Disaggregation of Revenue [Line Items]
Revenue:	(1,723)	(1,312)
All Other
Disaggregation of Revenue [Line Items]
Revenue:	42,603	38,533
All Other | Aggregates
Disaggregation of Revenue [Line Items]
Revenue:	8,564	11,701
All Other | Ready-mix concrete
Disaggregation of Revenue [Line Items]
Revenue:	10,063	13,593
All Other | Asphalt
Disaggregation of Revenue [Line Items]
Revenue:	4,397	4,827
All Other | Other
Disaggregation of Revenue [Line Items]
Revenue:	8,269	5,171
All Other | Contracting services public-sector
Disaggregation of Revenue [Line Items]
Revenue:	18,334	13,043
All Other | Contracting services private-sector
Disaggregation of Revenue [Line Items]
Revenue:	697	568
All Other | Internal sales
Disaggregation of Revenue [Line Items]
Revenue:	$ (7,721)	$ (10,370)

Contract Balances (Details)

Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract assets	$ 30,974		$ 31,145
Change in contract assets	(171)
Contract liabilities	(37,375)		$ (39,843)
Contract with Customer, Liability, Current Change	2,468
Net contract liabilities	(6,401)	$ (8,698)
Change in net contract assets (liabilities)	2,297
Amounts included in contract liability at the beginning of the period	20,300	20,000
Contract with customer, performance obligation satisfied in previous period	$ 3,600	$ 4,800

Uncompleted contracts remaining

Uncompleted contracts remaining performance obligations (Details 2) $ in Millions	Mar. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 958.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 863.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 70.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	13 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 23.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	25 months

Business Combinations (Details)

Business Combinations (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Mar. 31, 2023
Business Acquisition [Line Items]
Goodwill	$ 274,540,000	$ 274,540,000
2022 Acquisition
Business Acquisition [Line Items]
Gross Aggregate Consideration	8,900,000
Cash Assumed	2,800,000
Business Combination, Consideration Transferred	1,500,000
Business Combination, Consideration Transferred, Liabilities Incurred	70,000
Current Assets	1,700,000
Property, Plant, and Equipment	5,900,000
Goodwill	200,000
Current Liabilities	100,000
Noncurrent Liabilities - Other	500,000
Deferred Tax Liabilities	$ 1,200,000
2022 Acquisition | Common stock
Business Acquisition [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	273,153
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned	$ 8,400,000
Equity Issued in Business Combination, Fair Value Disclosure	$ 7,300,000

Business Combinations - Acquisi

Business Combinations - Acquisition Costs Incurred (Details 2) - USD ($)	Mar. 31, 2023	Mar. 31, 2022
Operating Expense [Member]
Business Acquisition [Line Items]
Business Acquisition, Transaction Costs	$ 0	$ 0

Goodwill rollforward (Details)

Goodwill rollforward (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 274,540
Goodwill acquired during the year	0
Measurement period adjustments	0
Balance at end of period	274,540
Pacific
Goodwill [Roll Forward]
Balance at beginning of period	38,339
Goodwill acquired during the year	0
Measurement period adjustments	0
Balance at end of period	38,339
Northwest
Goodwill [Roll Forward]
Balance at beginning of period	90,978
Goodwill acquired during the year	0
Measurement period adjustments	0
Balance at end of period	90,978
Mountain
Goodwill [Roll Forward]
Balance at beginning of period	26,816
Goodwill acquired during the year	0
Measurement period adjustments	0
Balance at end of period	26,816
North Central
Goodwill [Roll Forward]
Balance at beginning of period	75,879
Goodwill acquired during the year	0
Measurement period adjustments	0
Balance at end of period	75,879
All Other
Goodwill [Roll Forward]
Balance at beginning of period	42,528
Goodwill acquired during the year	0
Measurement period adjustments	0
Balance at end of period	$ 42,528

Other intangible assets (Detail

Other intangible assets (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net (excluding goodwill)	$ 12,763,000		$ 13,430,000
Amortization of intangible assets	667,000	$ 621,000
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	18,540,000		18,540,000
Intangible assets, less accumulated amortization	7,801,000		7,367,000
Intangible assets, net (excluding goodwill)	10,739,000		11,173,000
Noncompete agreements
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	4,039,000		4,039,000
Intangible assets, less accumulated amortization	3,113,000		2,985,000
Intangible assets, net (excluding goodwill)	926,000		1,054,000
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	2,479,000		5,279,000
Intangible assets, less accumulated amortization	1,381,000		4,076,000
Intangible assets, net (excluding goodwill)	$ 1,098,000		$ 1,203,000

Future amortization expense (De

Future amortization expense (Details 3) $ in Thousands	Mar. 31, 2023 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2023	$ 1,826
2024	2,361
2025	2,084
2026	1,782
2027	1,759
Thereafter	$ 2,951

Fair value measurements Insuran

Fair value measurements Insurance contracts (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Investments used to satisfy nonqualified benefit plans obligations	$ 22,400,000		$ 20,100,000
Net unrealized gain (loss) on investments used to satisfy obligations under nonqualified benefit plans	$ 827,000	$ (1,000,000)

Fair value measurements (Detail

Fair value measurements (Details 2) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Concentration risks, percentage [Abstract]
Percentage in fixed-income and other investments	61%	63%
Percentage investment in common stock of large-cap companies	15%	15%
Percentage investment in common stock of mid-cap companies	8%	8%
Percentage investment in target date investments	7%	6%
Percentage investment in common stock of small-cap companies	6%	6%
Percentage investment in cash and cash equivalents	2%	2%
Percentage investment in international investments	1%
Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	$ 24,910	$ 22,531
Fair value, inputs, level 2 | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	24,910	22,531
Money market funds | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	2,472	2,448
Money market funds | Fair value, inputs, level 2 | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	2,472	2,448
Insurance contracts* | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	22,438	20,083
Insurance contracts* | Fair value, inputs, level 2 | Fair value, measurements, recurring
Fair value measurements [Line Items]
Assets, fair value disclosure	$ 22,438	$ 20,083

Cash flow information (Details)

Cash flow information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Supplemental Cash Flow Information [Abstract]
Interest, net	$ 7,081	$ 704
Income taxes paid, net	150	5
Right-of-use assets obtained in exchange for new operating lease liabilities	1,894	2,071
Property, plant and equipment additions in accounts payable	$ 2,607	$ 4,921

Business segment data (Details)

Business segment data (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Revenues	$ 307,900	$ 309,966
EBITDA:	(14,108)	(18,191)
Pacific
Segment Reporting Information [Line Items]
Revenues	67,787	85,349
EBITDA:	(3,113)	5,433
Northwest
Segment Reporting Information [Line Items]
Revenues	115,919	104,791
EBITDA:	13,138	12,781
Mountain
Segment Reporting Information [Line Items]
Revenues	60,618	58,469
EBITDA:	(6,547)	(8,042)
North Central
Segment Reporting Information [Line Items]
Revenues	20,973	22,824
EBITDA:	(23,567)	(24,269)
All Other
Segment Reporting Information [Line Items]
Revenues	42,603	38,533
EBITDA:	5,981	(4,094)
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Revenues	(39,585)	(46,034)
Intersegment Eliminations [Member] | Pacific
Segment Reporting Information [Line Items]
Revenues	11,295	16,148
Intersegment Eliminations [Member] | Northwest
Segment Reporting Information [Line Items]
Revenues	12,932	14,142
Intersegment Eliminations [Member] | Mountain
Segment Reporting Information [Line Items]
Revenues	5,914	4,062
Intersegment Eliminations [Member] | North Central
Segment Reporting Information [Line Items]
Revenues	1,723	1,312
Intersegment Eliminations [Member] | All Other
Segment Reporting Information [Line Items]
Revenues	7,721	10,370
Total intersegment operating revenues
Segment Reporting Information [Line Items]
Revenues	$ 39,585	$ 46,034

Business segment data operating

Business segment data operating revenues reconciliation (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 307,900	$ 309,966
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	297,161	307,097
Corporate, Non-Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	50,324	48,903
Internal sales
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ (39,585)	$ (46,034)

Business segment data EBITDA re

Business segment data EBITDA reconciliation (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment, Reconciliation of Other Items from Segments to Consolidated [Line Items]
EBITDA:	$ (14,108)	$ (18,191)
Depreciation, Depletion and Amortization	29,629	28,350
Interest expense	9,495	5,266
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	(53,232)	(51,807)
Operating Segments
Segment, Reconciliation of Other Items from Segments to Consolidated [Line Items]
EBITDA:	(20,089)	(14,097)
Corporate, Non-Segment
Segment, Reconciliation of Other Items from Segments to Consolidated [Line Items]
EBITDA:	$ 5,981	$ (4,094)

Employee benefit plans (Details

Employee benefit plans (Details) - Qualified plan - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Underfunded plan | Pension benefits
Defined benefit plan disclosure, net periodic benefit cost [Line Items]
Interest cost	$ 408	$ 282
Expected return on assets	(450)	(493)
Amortization of net actuarial (gain) loss	128	214
Net periodic benefit cost (credit)	86	3
Overfunded Plan | Other postretirement benefits
Defined benefit plan disclosure, net periodic benefit cost [Line Items]
Service cost	89	131
Interest cost	181	128
Expected return on assets	7	(3)
Amortization of prior service credit	(20)	(20)
Amortization of net actuarial (gain) loss	(45)	88
Net periodic benefit cost (credit)	$ 212	$ 324

Litigation (Details)

Litigation (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Loss Contingencies [Line Items]
Potential liabilities related to litigation and environmental matters	$ 2,000,000	$ 1,000,000
Insurance Receivable	$ 1,300,000	$ 325,000

Guarantees (Details 2)

Guarantees (Details 2)	Mar. 31, 2023 USD ($)
Guarantor Obligations [Line Items]
Guarantor obligations, maximum exposure, undiscounted	$ 11,500,000
Amount outstanding under guarantees that is reflected on balance sheet	0
Letters of credit	4,900,000
Letters of credit set to expire - 2023	4,600,000
Letters of credit set to expire - 2024	332,000
Outstanding letters of credit	0
Amount of surety bonds outstanding	$ 822,700,000

Related Party Disclosures (Deta

Related Party Disclosures (Details 1) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Related Party Transactions [Abstract]
Costs and Expenses, Related Party	$ 4.6	$ 4.9

Related Party Disclosures (De_2

Related Party Disclosures (Details 2) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Related Party Transaction [Line Items]
Long-term debt	$ 359	$ 427
Related Party
Related Party Transaction [Line Items]
Debt, Long-Term and Short-Term, Combined Amount	816,060	684,449
Debt, Current	238,000	238,000
Long-term debt	$ 578,060	446,449
Related Party | Senior Notes
Related Party Transaction [Line Items]
Weighted Average Interest Rate	4.34%
Long-term debt	$ 410,000	410,000
Related Party | Commercial Paper
Related Party Transaction [Line Items]
Weighted Average Interest Rate	6.30%
Long-term debt	$ 165,599	66,449
Related Party | Credit Agreements
Related Party Transaction [Line Items]
Weighted Average Interest Rate	8.05%
Long-term debt	$ 32,461	0
Related Party | Short-Term Debt
Related Party Transaction [Line Items]
Short-Term Debt, Weighted Average Interest Rate, at Point in Time	5.96%
Short-Term Debt	$ 208,000	$ 208,000

Related Party Disclosures (De_3

Related Party Disclosures (Details 3) - Related Party - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Long-term debt maturities [Line Items]
Remainder of 2023	$ 238,000	$ 238,000
2024	198,100
2025	10,000
2026	0
2027	65,000
Thereafter	$ 305,000

Related Party Disclosures (De_4

Related Party Disclosures (Details 4 ) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Related Party Transactions [Abstract]
Related Party Transaction, Amounts of Transaction	$ 131,000	$ 130,000

Subsequent Events (Details)

Subsequent Events (Details) - Senior Notes - Subsequent Event [Member] $ in Millions	Apr. 25, 2023 USD ($)
Long-term debt outstanding [Line Items]
Long-term debt	$ 425
Long-Term Debt, Percentage Bearing Fixed Interest, Percentage Rate	7.75%

Subsequent Events (Details 2)

Subsequent Events (Details 2) - Subsequent Event [Member]	May 03, 2023
Subsequent Event [Line Items]
Percent of Shares Distributed in Conjunction with Spinoff	90%
Percent of Shares, Retained by Parent, in Conjunction with Spinoff	10%