Cover page
Cover page - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-41642 | |
Entity Registrant Name | Knife River Corporation | |
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, $0.01 par value | |
Trading Symbol | KNF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity common stock, shares outstanding | 56,612,705 | |
Entity Central Index Key | 0001955520 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue: | ||||
Revenue | $ 806,906 | $ 785,189 | $ 1,136,496 | $ 1,093,089 |
Cost of revenue: | ||||
Cost of revenue | 630,686 | 632,206 | 953,783 | 936,011 |
Gross profit | 176,220 | 152,983 | 182,713 | 157,078 |
Selling, general and administrative expenses | 59,474 | 59,450 | 119,695 | 108,108 |
Operating income | 116,746 | 93,533 | 63,018 | 48,970 |
Interest expense | 13,936 | 19,156 | 27,912 | 28,651 |
Other income | 1,304 | 2,478 | 5,054 | 3,304 |
Income before income taxes | 104,114 | 76,855 | 40,160 | 23,623 |
Income tax expense | 26,185 | 20,019 | 9,859 | 8,107 |
Net income | $ 77,929 | $ 56,836 | $ 30,301 | $ 15,516 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.38 | $ 1 | $ 0.54 | $ 0.27 |
Diluted (in dollars per share) | $ 1.37 | $ 1 | $ 0.53 | $ 0.27 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 56,611 | 56,566 | 56,601 | 56,566 |
Diluted (in shares) | 56,811 | 56,599 | 56,791 | 56,583 |
Construction materials | ||||
Revenue: | ||||
Revenue | $ 435,132 | $ 431,752 | $ 639,227 | $ 624,669 |
Cost of revenue: | ||||
Cost of revenue | 310,322 | 316,179 | 520,152 | 510,308 |
Contracting services | ||||
Revenue: | ||||
Revenue | 371,774 | 353,437 | 497,269 | 468,420 |
Cost of revenue: | ||||
Cost of revenue | $ 320,364 | $ 316,027 | $ 433,631 | $ 425,703 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 77,929 | $ 56,836 | $ 30,301 | $ 15,516 |
Other comprehensive income: | ||||
Reclassification adjustment for loss on derivative instruments included in net income, net of tax of $0 and $13 for the three months ended and $0 and $28 for the six months ended in 2024 and 2023, respectively | 0 | 44 | 0 | 90 |
Postretirement liability adjustment: | ||||
Postretirement liability losses arising during the period, net of tax of $0 and $(6) for the three months ended and $0 and $(6) for the six months ended in 2024 and 2023, respectively | 0 | (17) | 0 | (17) |
Amortization of postretirement liability losses included in net periodic benefit cost, net of tax of $25 and $15 for the three months ended and $50 and $31 for the six months ended in 2024 and 2023, respectively | 77 | 48 | 155 | 95 |
Postretirement liability adjustment | 77 | 31 | 155 | 78 |
Other comprehensive income | 77 | 75 | 155 | 168 |
Comprehensive income attributable to common stockholders | $ 78,006 | $ 56,911 | $ 30,456 | $ 15,684 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Reclassification adjustment for loss on derivative instruments included in net income, tax | $ 0 | $ 13 | $ 0 | $ 28 |
Postretirement liability losses arising during the period, net of tax | 0 | (6) | 0 | (6) |
Amortization of postretirement liability losses included in net periodic benefit cost, tax | $ 25 | $ 15 | $ 50 | $ 31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Current assets: | |||
Cash, cash equivalents and restricted cash | $ 57,169 | $ 262,320 | $ 68,489 |
Receivables, net | 422,941 | 266,785 | 418,620 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 49,150 | 27,293 | 58,020 |
Inventories | 385,378 | 319,623 | 374,377 |
Prepayments and other current assets | 35,049 | 37,522 | 38,820 |
Total current assets | 949,687 | 913,543 | 958,326 |
Noncurrent assets: | |||
Property, plant and equipment | 2,672,253 | 2,579,734 | 2,533,435 |
Less accumulated depreciation, depletion and amortization | 1,316,872 | 1,264,687 | 1,221,966 |
Net property, plant and equipment | 1,355,381 | 1,315,047 | 1,311,469 |
Goodwill | 275,213 | 274,478 | 274,478 |
Other intangible assets, net | 10,144 | 10,821 | 12,110 |
Operating lease right-of-use assets | 47,818 | 44,706 | 45,933 |
Investments and other | 44,619 | 41,218 | 40,581 |
Total noncurrent assets | 1,733,175 | 1,686,270 | 1,684,571 |
Total assets | 2,682,862 | 2,599,813 | 2,642,897 |
Current liabilities: | |||
Long-term debt - current portion | 7,072 | 7,082 | 7,082 |
Accounts payable | 164,188 | 107,656 | 174,603 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 45,123 | 51,376 | 44,590 |
Taxes payable | 15,602 | 9,300 | 29,878 |
Accrued compensation | 29,208 | 48,098 | 26,041 |
Accrued interest | 7,167 | 7,247 | 7,906 |
Current operating lease liabilities | 13,615 | 12,948 | 14,067 |
Other accrued liabilities | 96,334 | 103,564 | 80,189 |
Total current liabilities | 378,309 | 347,271 | 384,356 |
Noncurrent liabilities: | |||
Long-term debt | 672,466 | 674,577 | 832,047 |
Deferred income taxes | 179,197 | 174,542 | 170,502 |
Noncurrent operating lease liabilities | 34,203 | 31,758 | 31,866 |
Other | 119,981 | 105,653 | 129,274 |
Total liabilities | 1,384,156 | 1,333,801 | 1,548,045 |
Commitments and contingencies | |||
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock, 300,000,000 shares authorized, $0.01 par value, 57,043,841 shares issued and 56,612,705 shares outstanding at June 30, 2024; 56,997,350 shares issued and 56,566,214 shares outstanding at June 30, 2023; 57,009,542 shares issued and 56,578,406 shares outstanding at December 31, 2023 | 570 | 570 | 570 |
Other paid-in capital | 616,757 | 614,513 | 611,562 |
Retained earnings | 696,169 | 665,874 | 498,530 |
Treasury stock held at cost - 431,136 shares | (3,626) | (3,626) | (3,626) |
Accumulated other comprehensive loss | (11,164) | (11,319) | (12,184) |
Total stockholders' equity | 1,298,706 | 1,266,012 | 1,094,852 |
Total liabilities and stockholders' equity | $ 2,682,862 | $ 2,599,813 | $ 2,642,897 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | |||
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 57,043,841 | 57,009,542 | 56,997,350 |
Common stock, outstanding (in shares) | 56,612,705 | 56,578,406 | 56,566,214 |
Treasury stock held at cost (in shares) | 431,136 | 431,136 | 431,136 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Other Paid-in Capital | Retained Earnings | MDU Resources' Stock Held by Subsidiary | Treasury Stock | Accumula-ted Other Comprehe-nsive Loss |
Beginning balance (in shares) at Dec. 31, 2022 | 80,000 | ||||||
Beginning balance at Dec. 31, 2022 | $ 1,028,589 | $ 800 | $ 549,106 | $ 494,661 | $ (3,626) | $ 0 | $ (12,352) |
Common stock held by subsidiary, beginning balance (in shares) at Dec. 31, 2022 | (538,921) | ||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (41,320) | (41,320) | |||||
Other comprehensive income | 93 | 93 | |||||
Stock-based compensation expense | 414 | 453 | (39) | ||||
Net transfers to Centennial | (13,007) | (1,385) | (11,622) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 80,000 | ||||||
Common stock held by subsidiary, ending balance (in shares) at Mar. 31, 2023 | (538,921) | ||||||
Treasury stock, ending balance (in shares) at Mar. 31, 2023 | 0 | ||||||
Ending balance at Mar. 31, 2023 | 974,769 | $ 800 | 548,174 | 441,680 | $ (3,626) | $ 0 | (12,259) |
Beginning balance (in shares) at Dec. 31, 2022 | 80,000 | ||||||
Beginning balance at Dec. 31, 2022 | 1,028,589 | $ 800 | 549,106 | 494,661 | $ (3,626) | $ 0 | (12,352) |
Common stock held by subsidiary, beginning balance (in shares) at Dec. 31, 2022 | (538,921) | ||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 15,516 | ||||||
Other comprehensive income | $ 168 | ||||||
Ending balance (in shares) at Jun. 30, 2023 | 56,566,214 | 56,997,350 | |||||
Common stock held by subsidiary, ending balance (in shares) at Jun. 30, 2023 | 0 | ||||||
Treasury stock, ending balance (in shares) at Jun. 30, 2023 | (431,136) | (431,136) | |||||
Ending balance at Jun. 30, 2023 | $ 1,094,852 | $ 570 | 611,562 | 498,530 | $ 0 | $ (3,626) | (12,184) |
Beginning balance (in shares) at Mar. 31, 2023 | 80,000 | ||||||
Beginning balance at Mar. 31, 2023 | 974,769 | $ 800 | 548,174 | 441,680 | $ (3,626) | $ 0 | (12,259) |
Common stock held by subsidiary, beginning balance (in shares) at Mar. 31, 2023 | (538,921) | ||||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2023 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 56,836 | 56,836 | |||||
Other comprehensive income | 75 | 75 | |||||
Stock-based compensation expense | 226 | 212 | 14 | ||||
Transfer of MDU Resources' stock held by subsidiary (in share) | 538,921 | ||||||
Transfer of MDU Resources' stock held by subsidiary | 3,626 | $ 3,626 | |||||
Receipt of treasury stock at cost (in share) | (431,136) | ||||||
Receipt of treasury stock at cost | (3,626) | $ (3,626) | |||||
Retirement of historical common stock in connection with the Separation (in share) | (80,000) | ||||||
Retirement of historical common stock in connection with the Separation | 0 | $ (800) | 800 | ||||
Issuance of common stock in connection with the Separation (in shares) | 56,997,350 | ||||||
Issuance of common stock in connection with the Separation | (26) | $ 570 | (596) | ||||
Net transfers to Centennial | $ 62,972 | 62,972 | |||||
Ending balance (in shares) at Jun. 30, 2023 | 56,566,214 | 56,997,350 | |||||
Common stock held by subsidiary, ending balance (in shares) at Jun. 30, 2023 | 0 | ||||||
Treasury stock, ending balance (in shares) at Jun. 30, 2023 | (431,136) | (431,136) | |||||
Ending balance at Jun. 30, 2023 | $ 1,094,852 | $ 570 | 611,562 | 498,530 | $ 0 | $ (3,626) | (12,184) |
Beginning balance (in shares) at Dec. 31, 2023 | 56,578,406 | 57,009,542 | |||||
Beginning balance at Dec. 31, 2023 | $ 1,266,012 | $ 570 | 614,513 | 665,874 | $ 0 | $ (3,626) | (11,319) |
Common stock held by subsidiary, beginning balance (in shares) at Dec. 31, 2023 | 0 | ||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2023 | (431,136) | (431,136) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | $ (47,629) | (47,629) | |||||
Other comprehensive income | 78 | 78 | |||||
Stock-based compensation expense | 1,811 | 1,811 | |||||
Common stock issued for employee compensation, net of tax withholding (in shares) | 31,298 | ||||||
Common stock issued for employee compensation, net of tax withholding | (1,645) | (1,645) | |||||
Ending balance (in shares) at Mar. 31, 2024 | 57,040,840 | ||||||
Common stock held by subsidiary, ending balance (in shares) at Mar. 31, 2024 | 0 | ||||||
Treasury stock, ending balance (in shares) at Mar. 31, 2024 | (431,136) | ||||||
Ending balance at Mar. 31, 2024 | $ 1,218,627 | $ 570 | 614,679 | 618,245 | $ 0 | $ (3,626) | (11,241) |
Beginning balance (in shares) at Dec. 31, 2023 | 56,578,406 | 57,009,542 | |||||
Beginning balance at Dec. 31, 2023 | $ 1,266,012 | $ 570 | 614,513 | 665,874 | $ 0 | $ (3,626) | (11,319) |
Common stock held by subsidiary, beginning balance (in shares) at Dec. 31, 2023 | 0 | ||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2023 | (431,136) | (431,136) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | $ 30,301 | ||||||
Other comprehensive income | $ 155 | ||||||
Ending balance (in shares) at Jun. 30, 2024 | 56,612,705 | 57,043,841 | |||||
Common stock held by subsidiary, ending balance (in shares) at Jun. 30, 2024 | 0 | ||||||
Treasury stock, ending balance (in shares) at Jun. 30, 2024 | (431,136) | (431,136) | |||||
Ending balance at Jun. 30, 2024 | $ 1,298,706 | $ 570 | 616,757 | 696,169 | $ 0 | $ (3,626) | (11,164) |
Beginning balance (in shares) at Mar. 31, 2024 | 57,040,840 | ||||||
Beginning balance at Mar. 31, 2024 | 1,218,627 | $ 570 | 614,679 | 618,245 | $ 0 | $ (3,626) | (11,241) |
Common stock held by subsidiary, beginning balance (in shares) at Mar. 31, 2024 | 0 | ||||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2024 | (431,136) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 77,929 | 77,929 | |||||
Other comprehensive income | 77 | 77 | |||||
Stock-based compensation expense | 2,101 | 2,106 | (5) | ||||
Common stock issued for board of director fees (in share) | 3,001 | ||||||
Common stock issued for board of director fees | $ (28) | (28) | |||||
Ending balance (in shares) at Jun. 30, 2024 | 56,612,705 | 57,043,841 | |||||
Common stock held by subsidiary, ending balance (in shares) at Jun. 30, 2024 | 0 | ||||||
Treasury stock, ending balance (in shares) at Jun. 30, 2024 | (431,136) | (431,136) | |||||
Ending balance at Jun. 30, 2024 | $ 1,298,706 | $ 570 | $ 616,757 | $ 696,169 | $ 0 | $ (3,626) | $ (11,164) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating activities: | ||
Net income (loss) | $ 30,301 | $ 15,516 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation, depletion and amortization | 66,724 | 60,760 |
Deferred income taxes | 4,739 | (5,355) |
Provision for credit losses | 277 | 1,015 |
Amortization of debt issuance costs | 1,381 | 2,059 |
Employee stock-based compensation costs | 3,686 | 665 |
Pension and postretirement benefit plan net periodic benefit cost | 605 | 595 |
Unrealized gains on investments | (1,604) | (1,282) |
Gains on sales of assets | (5,626) | (3,356) |
Changes in current assets and liabilities, net of acquisitions: | ||
Receivables | (178,102) | (236,395) |
Due from related-party | 0 | 16,050 |
Inventories | (65,434) | (51,100) |
Other current assets | 2,473 | (20,853) |
Accounts payable | 57,853 | 102,566 |
Due to related-party | 0 | (7,310) |
Other current liabilities | (12,831) | 25,598 |
Pension and postretirement benefit plan contributions | (283) | (292) |
Other noncurrent changes | 6,064 | 30,741 |
Net cash used in operating activities | (89,777) | (70,378) |
Investing activities: | ||
Capital expenditures | (103,623) | (66,578) |
Acquisitions, net of cash acquired | (10,208) | 0 |
Net proceeds from sale or disposition of property and other | 6,765 | 4,117 |
Investments | (3,132) | (1,655) |
Net cash used in investing activities | (110,198) | (64,116) |
Financing activities: | ||
Issuance of long-term related-party notes, net | 0 | 205,275 |
Issuance of long-term debt | 0 | 855,000 |
Repayment of long-term debt | (3,503) | (127) |
Debt issuance costs | 0 | (16,640) |
Proceeds from issuance of common stock | 0 | (26) |
Tax withholding on stock-based compensation | (1,673) | 0 |
Net transfers to Centennial | 0 | (850,589) |
Net cash provided by (used in) financing activities | (5,176) | 192,893 |
Increase (decrease) in cash, cash equivalents and restricted cash | (205,151) | 58,399 |
Cash, cash equivalents and restricted cash -- beginning of year | 262,320 | 10,090 |
Cash, cash equivalents and restricted cash -- end of period | $ 57,169 | $ 68,489 |
Background
Background | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Background | Background Knife River is a people-first construction materials and contracting services company. We provide construction materials and contracting services to build safe roads, bridges, airport runways and other critical infrastructure needs that connect people with where they want to go and with the supplies they need. Knife River is one of the leading providers of crushed stone and sand and gravel in the United States and operates across 14 states. We conduct our operations through five reportable segments: Pacific, Northwest, Mountain, Central and Energy Services. In the fourth quarter of 2023, we realigned our reportable segments to better support our operational strategies. As a result, a portion of the Pacific segment’s businesses are now reported under the Energy Services segment. In addition, the North Central and South operating regions have been aggregated into one reportable segment, Central. We also reallocated certain amounts to the operating segments that were previously reported within Corporate Services. All periods have been recast to conform with the revised presentation. See Note 14 for additional information. Separation from MDU Resources On May 31, 2023, MDU Resources completed the previously announced separation of Knife River through the distribution of approximately 90 percent of the outstanding shares of common stock, par value $.01 per share, of Knife River to the stockholders of record of MDU Resources as of the close of business on May 22, 2023. MDU Resources retained approximately 10 percent of the outstanding shares of Knife River common stock. The Distribution was structured as a pro rata distribution of one share of Knife River common stock for every four shares of MDU Resources common stock. In November 2023, MDU Resources disposed of all 5,656,621 retained shares of Knife River common stock in an underwritten public offering. As a result of the Distribution, Knife River is now an independent public company and its common stock is listed under the symbol “KNF” on the New York Stock Exchange. All share and earnings per share information has been retroactively adjusted for all periods presented to reflect the Distribution. |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated interim financial statements were prepared in accordance with accounting principles generally accepted in the United States of America ("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 Company's 2023 Annual Report on Form 10-K ("Annual Report"). 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. Prior to the Separation, Knife River operated as a wholly owned subsidiary of Centennial Energy Holdings, Inc., a direct wholly owned subsidiary of MDU Resources and the direct parent company of Knife River prior to the spinoff ("Centennial") and an indirect, wholly owned subsidiary of MDU Resources and not as a stand-alone company. The accompanying consolidated financial statements and footnotes for the periods prior to the Separation were prepared on a "carve-out" basis using a legal entity approach in conformity with GAAP and were derived from the consolidated financial statements of MDU Resources as if Knife River operated on a stand-alone basis during these periods. All revenues and costs, as well as assets and liabilities, directly associated with our business activities are included in the consolidated financial statements. In the periods prior to the Separation, the consolidated financial statements 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 and other income. For the three and six months ended June 30, 2023, the amount allocated to Knife River was $4.7 million and $9.6 million, respectively, in selling, general and administrative expenses and $300,000 and $600,000, respectively, in other income. These items were allocated 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 were 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. The allocations may not, however, reflect the expenses we would have incurred as a stand-alone company for the periods presented. These costs also may not be indicative of the expenses that we will incur in the future or would have incurred if we had obtained these services from a third party. Management has also evaluated the impact of events occurring after June 30, 2024, up to the date of issuance of these consolidated interim financial statements on August 6, 2024, that would require recognition or disclosure in the Consolidated Financial Statements. Principles of consolidation For all periods, the consolidated financial statements were prepared in accordance with GAAP and include the accounts of Knife River and its wholly owned subsidiaries. All intercompany accounts and transactions between the businesses comprising Knife River have been eliminated in the accompanying audited consolidated financial statements. Use of estimates The preparation of financial statements in conformity with GAAP requires us 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 we 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. Cash, cash equivalents and restricted cash We consider all highly liquid investments with an original maturity of three months or less, when purchased, to be cash and cash equivalents. Restricted cash represents deposits held by our captive insurance company that is required by state insurance regulations to remain in the captive insurance company. Cash, cash equivalents and restricted cash on the Consolidated Balance Sheets is comprised of: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Cash and cash equivalents $ 15,468 $ 40,089 $ 219,324 Restricted cash 41,701 28,400 42,996 Cash, cash equivalents and restricted cash $ 57,169 $ 68,489 $ 262,320 Seasonality of operations Some of our 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 Knife River as a whole, may not be indicative of results for the full fiscal year or other future periods. |
New accounting standards
New accounting standards | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
New accounting standards | New accounting standards The following table provides a brief description of the accounting pronouncements applicable to Knife River and the potential impact on its consolidated financial statements and/or disclosures: Standard Description Standard Effective Date Impact on financial statements/disclosures Recently issued Financial Accounting Standards Board (FASB) accounting standards updates ("ASU") not yet adopted ASU 2023-07 - Improvements to Reportable Segment Disclosures In November 2023, the FASB issued guidance on modifying the disclosure requirements to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The guidance also expands the interim disclosure requirements. The guidance is to be applied on a retrospective basis to the financial statements and footnotes and early adoption is permitted. Fiscal periods beginning after December 15, 2023 and interim periods beginning after December 31, 2024 The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2024 and interim periods for fiscal year 2025. ASU 2023-09 - Improvements to Income Tax Disclosures In December 2023, the FASB issued guidance on modifying the disclosure requirements to increase transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance is to be applied on a prospective basis to the financial statements and footnotes, however, retrospective adoption is also permitted. The guidance also permits early adoption. Fiscal periods beginning after December 15, 2024 The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2025. |
Receivables and allowance for e
Receivables and allowance for expected credit losses | 6 Months Ended |
Jun. 30, 2024 | |
Credit Loss [Abstract] | |
Receivables and allowance for expected credit loss | Receivables and allowance for expected credit losses Receivables consist primarily of trade and contract receivables for the sale of goods and services net of expected credit losses. A majority of our receivables are due in 30 days or less. The total balance of receivables past due 90 days or more was $7.4 million, $11.6 million and $16.7 million at June 30, 2024, June 30, 2023 and December 31, 2023, respectively. Receivables were as follows: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Trade receivables $ 206,673 $ 220,948 $ 124,134 Contract receivables 188,120 173,318 112,037 Retention receivables 32,649 30,224 36,782 Receivables, gross 427,442 424,490 272,953 Less expected credit loss 4,501 5,870 6,168 Receivables, net $ 422,941 $ 418,620 $ 266,785 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. We develop and document our methodology to determine our allowance for expected credit losses. Risk characteristics used by management 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 Central Energy Services Total (In thousands) As of December 31, 2023 $ 2,053 $ 1,004 $ 2,293 $ 718 $ 100 $ 6,168 Current expected credit loss provision 177 (223) (47) 87 — (6) Less write-offs charged against the allowance (53) 133 2 3 — 85 At March 31, 2024 $ 2,283 $ 648 $ 2,244 $ 802 $ 100 $ 6,077 Current expected credit loss provision 25 79 27 151 1 283 Less write-offs charged against the allowance 513 11 1,122 212 1 1,859 At June 30, 2024 $ 1,795 $ 716 $ 1,149 $ 741 $ 100 $ 4,501 Pacific Northwest Mountain Central Energy Services Total (In thousands) As of December 31, 2022 $ 1,945 $ 1,253 $ 1,278 $ 901 $ 100 $ 5,477 Current expected credit loss provision 45 313 164 (90) — 432 Less write-offs charged against the allowance 1 68 18 — — 87 At March 31, 2023 $ 1,989 $ 1,498 $ 1,424 $ 811 $ 100 $ 5,822 Current expected credit loss provision 8 74 631 (131) 1 583 Less write-offs charged against the allowance 17 512 3 2 1 535 At June 30, 2023 $ 1,980 $ 1,060 $ 2,052 $ 678 $ 100 $ 5,870 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories on the Consolidated Balance Sheets were as follows: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Finished products $ 245,983 $ 227,683 $ 225,319 Raw materials 100,029 104,689 61,776 Supplies and parts 39,366 42,005 32,528 Total $ 385,378 $ 374,377 $ 319,623 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 our 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. |
Net income per share
Net income per share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net income per share | Net income per share Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Diluted net income per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of non-vested performance shares and restricted stock units. Weighted average common shares outstanding is comprised of issued shares of 57,043,841 less shares held in treasury of 431,136. Basic and diluted net income per share are calculated as follows, based on a reconciliation of the weighted-average common shares outstanding on a basic and diluted basis: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands, except per share amounts) Net income $ 77,929 $ 56,836 $ 30,301 $ 15,516 Weighted average common shares outstanding - basic 56,611 56,566 56,601 56,566 Effect of dilutive performance shares and restricted stock units 200 33 190 17 Weighted average common shares outstanding - diluted 56,811 56,599 56,791 56,583 Shares excluded from the calculation of diluted loss per share 16 — 21 — Net income per share - basic $ 1.38 $ 1.00 $ .54 $ .27 Net income per share - diluted $ 1.37 $ 1.00 $ .53 $ .27 |
Accumulated other comprehensive
Accumulated other comprehensive loss | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated other comprehensive loss | 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) As of December 31, 2023 $ — $ (11,319) $ (11,319) Amounts reclassified from accumulated other comprehensive loss — 78 78 Net current-period other comprehensive income — 78 78 At March 31, 2024 $ — $ (11,241) $ (11,241) Amounts reclassified from accumulated other comprehensive loss — 77 77 Net current-period other comprehensive income — 77 77 At June 30, 2024 $ — $ (11,164) $ (11,164) Net Unrealized Postretirement Total (In thousands) As of 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) Other comprehensive loss before reclassification — (17) (17) Amounts reclassified from accumulated other comprehensive loss 44 48 92 Net current-period other comprehensive income 44 31 75 At June 30, 2023 $ — $ (12,184) $ (12,184) The following amounts were reclassified out of accumulated other comprehensive loss into net income. The amounts presented in parenthesis indicate a decrease to net income on the Consolidated Statements of Operations. The reclassifications were as follows: Three Months Ended Six Months Ended Location on Consolidated Statements of Operations June 30, June 30, 2024 2023 2024 2023 (In thousands) Reclassification adjustment for loss on derivative instruments included in net income $ — $ (57) $ — $ (118) Interest expense — 13 — 28 Income taxes — (44) — (90) Amortization of postretirement liability losses included in net periodic benefit cost (102) (63) (205) (126) Other income 25 15 50 31 Income taxes (77) (48) (155) (95) Total reclassifications $ (77) $ (92) $ (155) $ (185) |
Revenue from contracts with cus
Revenue from contracts with customers | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from contracts with customers | 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 includes revenue from the sales of construction materials and contracting services. 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. Knife River is considered an agent for certain taxes collected from customers. As such, we present revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes. Revenue for construction materials is recognized at a point in time when delivery of the products has taken place. Contracting revenue is recognized over time using an input method based on the cost-to-cost measure of progress on a project. Disaggregation In the following tables, revenue is disaggregated by category for each segment and includes 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. We believe 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 14. Three Months Ended June 30, 2024 Pacific Northwest Mountain Central Energy Services Corporate Services and Eliminations Total (In thousands) Aggregates $ 31,259 $ 53,061 $ 31,138 $ 42,943 $ — $ — $ 158,401 Ready-mix concrete 36,667 45,660 34,967 62,225 — — 179,519 Asphalt 8,622 32,529 32,860 45,268 — — 119,279 Liquid asphalt — — — — 65,304 — 65,304 Other 42,357 5,574 7 10,875 14,386 4,511 77,710 Contracting services public-sector 20,713 71,299 90,023 102,820 — — 284,855 Contracting services private-sector 14,222 25,596 41,552 5,549 — — 86,919 Internal sales (22,013) (33,494) (36,778) (55,077) (13,447) (4,272) (165,081) Revenues from contracts with customers $ 131,827 $ 200,225 $ 193,769 $ 214,603 $ 66,243 $ 239 $ 806,906 Three Months Ended June 30, 2023 Pacific Northwest Mountain Central Energy Services Corporate Services and Eliminations Total (In thousands) Aggregates $ 27,446 $ 47,966 $ 28,866 $ 42,138 $ — $ — $ 146,416 Ready-mix concrete 40,526 44,583 34,506 65,283 — — 184,898 Asphalt 6,275 34,518 29,472 54,672 — — 124,937 Liquid asphalt — — — — 72,920 — 72,920 Other 39,802 4,335 8 10,909 13,849 1,341 70,244 Contracting services public-sector 16,848 53,301 80,381 114,025 — — 264,555 Contracting services private-sector 16,575 29,353 37,317 5,637 — — 88,882 Internal sales (22,393) (35,322) (34,796) (61,630) (13,706) 184 (167,663) Revenues from contracts with customers $ 125,079 $ 178,734 $ 175,754 $ 231,034 $ 73,063 $ 1,525 $ 785,189 Six Months Ended June 30, 2024 Pacific Northwest Mountain Central Energy Services Corporate Services and Eliminations Total (In thousands) Aggregates $ 50,809 $ 92,459 $ 40,592 $ 58,814 $ — $ — $ 242,674 Ready-mix concrete 67,887 77,436 48,803 85,248 — — 279,374 Asphalt 10,969 40,766 33,690 50,326 — — 135,751 Liquid asphalt — — — — 76,340 — 76,340 Other 67,686 9,147 13 12,773 17,448 9,654 116,721 Contracting services public-sector 26,188 107,343 115,882 123,853 — — 373,266 Contracting services private-sector 22,296 40,628 55,355 5,724 — — 124,003 Internal sales (35,621) (48,402) (40,740) (61,173) (16,428) (9,269) (211,633) Revenues from contracts with customers $ 210,214 $ 319,377 $ 253,595 $ 275,565 $ 77,360 $ 385 $ 1,136,496 Six Months Ended June 30, 2023 Pacific Northwest Mountain Central Energy Services Corporate Services and Eliminations Total (In thousands) Aggregates $ 46,143 $ 90,540 $ 38,532 $ 54,722 $ — $ — $ 229,937 Ready-mix concrete 66,670 78,488 48,876 87,633 — — 281,667 Asphalt 7,591 41,445 30,282 59,238 — — 138,556 Liquid asphalt — — — — 81,206 — 81,206 Other 63,222 7,016 11 12,495 16,040 1,767 100,551 Contracting services public-sector 20,819 70,304 108,619 136,885 — — 336,627 Contracting services private-sector 19,474 55,115 50,762 6,442 — — 131,793 Internal sales (33,197) (48,254) (40,710) (68,761) (15,928) (398) (207,248) Revenues from contracts with customers $ 190,722 $ 294,654 $ 236,372 $ 288,654 $ 81,318 $ 1,369 $ 1,093,089 |
Uncompleted contracts
Uncompleted contracts | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Uncompleted contracts | 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: June 30, 2024 December 31, 2023 Change Location on Consolidated Balance Sheets (In thousands) Contract assets $ 49,150 $ 27,293 $ 21,857 Costs and estimated earnings in excess of billings on uncompleted contracts Contract liabilities (45,123) (51,376) 6,253 Billings in excess of costs and estimated earnings on uncompleted contracts Net contract assets (liabilities) $ 4,027 $ (24,083) $ 28,110 June 30, 2023 December 31, 2022 Change Location on Consolidated Balance Sheets (In thousands) Contract assets $ 58,020 $ 31,145 $ 26,875 Costs and estimated earnings in excess of billings on uncompleted contracts Contract liabilities (44,590) (39,843) (4,747) Billings in excess of costs and estimated earnings on uncompleted contracts Net contract assets (liabilities) $ 13,430 $ (8,698) $ 22,128 The Company recognized $14.4 million and $44.9 million in revenue for the three and six months ended June 30, 2024, respectively, which was previously included in contract liabilities at December 31, 2023. The Company recognized $11.4 million and $31.7 million in revenue for the three and six months ended June 30, 2023, respectively, which was previously included in contract liabilities at December 31, 2022. The Company recognized a net increase in revenues of $15.1 million and $21.2 million for the three and six months ended June 30, 2024, respectively, from performance obligations satisfied in prior periods. The Company recognized a net increase in revenues of $7.4 million and $8.1 million for the three and six months ended June 30, 2023, respectively, from performance obligations satisfied in prior periods. Remaining performance obligations The remaining performance obligations, also referred to as backlog, include unrecognized revenues that we reasonably expect 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 our contracts for contracting services have an original duration of less than one year. At June 30, 2024, the Company's remaining performance obligations were $988.5 million. We expect to recognize the following revenue amounts in future periods related to these remaining performance obligations: $936.7 million within the next 12 months or less; $44.0 million within the next 13 to 24 months; and $7.8 million in 25 months or more. |
Goodwill and other intangible a
Goodwill and other intangible assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets The changes in the carrying amount of goodwill were as follows: Balance at January 1, 2024 Goodwill Acquired During the Year Measurement Period Adjustments Reallocation of Goodwill Balance at June 30, 2024 (In thousands) Pacific $ 32,621 $ — $ — $ — $ 32,621 Northwest 90,978 — — — 90,978 Mountain 26,816 — — — 26,816 North Central 75,879 735 — — 76,614 South 38,708 — — — 38,708 Energy Services 9,476 — — — 9,476 Total $ 274,478 $ 735 $ — $ — $ 275,213 Balance at January 1, 2023 Goodwill Acquired During the Year Measurement Period Adjustments Reallocation of Goodwill Balance at June 30, 2023 (In thousands) Pacific $ 38,339 $ — $ (62) $ — $ 38,277 Northwest 90,978 — — — 90,978 Mountain 26,816 — — — 26,816 North Central 75,879 — — — 75,879 South 38,708 — — — 38,708 Energy Services 3,820 — — — 3,820 Total $ 274,540 $ — $ (62) $ — $ 274,478 Balance at January 1, 2023 Goodwill Acquired During the Year Measurement Period Adjustments Reallocation of Goodwill Balance at December 31, 2023 (In thousands) Pacific $ 38,339 $ — $ (62) $ (5,656) $ 32,621 Northwest 90,978 — — — 90,978 Mountain 26,816 — — — 26,816 North Central 75,879 — — — 75,879 South 38,708 — — — 38,708 Energy Services 3,820 — — 5,656 9,476 Total $ 274,540 $ — $ (62) $ — $ 274,478 Other amortizable intangible assets were as follows: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Customer relationships $ 18,868 $ 18,540 $ 18,540 Less accumulated amortization 9,977 8,235 9,102 8,891 10,305 9,438 Noncompete agreements 3,784 4,039 4,039 Less accumulated amortization 3,283 3,239 3,473 501 800 566 Other 1,796 2,479 2,479 Less accumulated amortization 1,044 1,474 1,662 752 1,005 817 Total $ 10,144 $ 12,110 $ 10,821 Amortization expense for amortizable intangible assets for the three and six months ended June 30, 2024, was $526,000 and $1.1 million, respectively. Amortization expense for amortizable intangible assets for the three and six months ended June 30, 2023, was $653,000 and $1.3 million, respectively. Estimated amortization expense for identifiable intangible assets as of June 30, 2024, was: Remainder of 2024 2025 2026 2027 2028 Thereafter (In thousands) Amortization expense $ 1,192 $ 1,964 $ 1,784 $ 1,761 $ 1,717 $ 1,726 |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | 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 guidance 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. Financial instruments measured at fair value on a recurring basis We measure our investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in income. We anticipate using these investments, which consist of insurance contracts, to satisfy our obligations under our unfunded, nonqualified defined benefit and defined contribution plans for our 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 $27.3 million, $19.1 million and $24.9 million at June 30, 2024 and 2023, and December 31, 2023, respectively, are classified as investments on the Consolidated Balance Sheets. The net unrealized gains on these investments were $392,000 and $197,000 for the three months ended and $1.6 million and $1.1 million for the six months ended June 30, 2024 and 2023, respectively. 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 June 30, 2024, Using Quoted Prices in Significant Significant Balance at June 30, 2024 (In thousands) Assets: Money market funds $ — $ 3,982 $ — $ 3,982 Insurance contracts* — 27,289 — 27,289 Total assets measured at fair value $ — $ 31,271 $ — $ 31,271 * The insurance contracts invest approximately 36 percent in fixed-income investments, 23 percent in common stock of large-cap companies, 15 percent in cash equivalents, 9 percent in common stock of mid-cap companies, 9 percent target date investments, 5 percent in common stock of small-cap companies, 1 percent in international investments, 1 percent in real estate investments and 1 percent in high yield investments. Fair Value Measurements at June 30, 2023, Using Quoted Prices in Significant Significant Balance at June 30, 2023 (In thousands) Assets: Money market funds $ — $ 7,529 $ — $ 7,529 Insurance contracts* — 19,141 — 19,141 Total assets measured at fair value $ — $ 26,670 $ — $ 26,670 * The insurance contracts invest approximately 47 percent in fixed-income investments, 20 percent in cash equivalents, 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 and 4 percent target date investments. Fair Value Measurements at December 31, 2023, Using Quoted Prices in Significant Significant Balance at December 31, 2023 (In thousands) Assets: Money market funds $ — $ 3,241 $ — $ 3,241 Insurance contracts* — 24,896 — 24,896 Total assets measured at fair value $ — $ 28,137 $ — $ 28,137 * The insurance contracts invest approximately 40 percent in fixed-income investments, 19 percent in common stock of large-cap companies, 18 percent in cash equivalents, 8 percent in target date investments, 8 percent in common stock of mid-cap companies, 6 percent in common stock of small-cap companies and 1 percent in international investments. 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 is 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 we believe 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. Nonfinancial instruments measured at fair value on a nonrecurring basis We apply the provisions of the fair value measurement standard to our 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. We review the carrying value of our long-lived assets, excluding goodwill, whenever events or changes in circumstances indicate that such carrying amounts may not be recoverable. The assets and liabilities of the acquisitions that occurred during the second quarter of 2024 were calculated using a market or cost approach. The fair value of some of the assets was determined based on Level 3 inputs including estimated future cash flows, discount rates, growth rates and sales projections, all of which require significant management judgment. The Company's long-term debt is not measured at fair value on the Consolidated Balance Sheets and the fair value is being provided for disclosure purposes only. The fair value was categorized as Level 2 in the fair value hierarchy and was based on discounted cash flows using current market interest rates. The estimated fair value of the Company's Level 2 long-term debt was as follows: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Carrying amount $ 693,483 $ 855,000 $ 696,985 Fair value $ 712,852 $ 862,420 $ 725,086 The carrying amounts of our remaining financial instruments included in current assets and current liabilities approximate their fair values. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Certain debt instruments of the Company contain restrictive covenants and cross-default provisions. In order to borrow under the debt agreements, we must be in compliance with the applicable covenants and certain other conditions, all of which the Company, as applicable, was in compliance with at June 30, 2024. In the event we do not comply with the applicable covenants and other conditions, alternative sources of funding may need to be pursued. Long-term Debt Outstanding Long-term debt outstanding was as follows: Weighted Average Interest Rate at June 30, 2024 June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Term loan agreement due on May 31, 2028 7.20 % $ 268,125 $ 275,000 $ 271,562 Revolving credit agreement — % — 155,000 — Senior notes due on May 1, 2031 7.75 % 425,000 425,000 425,000 Other notes due on January 1, 2061 — % 358 511 423 Less unamortized debt issuance costs 13,945 16,382 15,326 Total long-term debt 679,538 839,129 681,659 Less current maturities 7,072 7,082 7,082 Net long-term debt $ 672,466 $ 832,047 $ 674,577 Schedule of Debt Maturities Long-term debt maturities, which excludes unamortized debt issuance costs, at June 30, 2024, were as follows: Remainder of 2024 2025 2026 2027 2028 Thereafter (In thousands) Long-term debt maturities $ 3,634 $ 10,473 $ 13,750 $ 17,188 $ 223,438 $ 425,000 |
Cash flow information
Cash flow information | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Cash flow information | Cash flow information Cash expenditures for interest and income taxes were as follows: Six Months Ended June 30, 2024 2023 (In thousands) Interest paid, net $ 27,993 $ 24,802 Income taxes paid, net $ 1,662 $ 558 Noncash investing and financing transactions were as follows: Six Months Ended June 30, 2024 2023 (In thousands) Right-of-use assets obtained in exchange for new operating lease liabilities $ 10,844 $ 7,552 Property, plant and equipment additions in accounts payable $ 5,098 $ 3,359 Equity contribution from Centennial related to the Separation $ — $ 64,724 Equity contribution to MDU Resources for asset/liability transfers related to the Separation $ — $ (1,548) MDU Resources' stock issued prior to spin in connection with a business combination $ — $ 383 |
Business segment data
Business segment data | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Business segment data | Business segment data We focus on the vertical integration of our products and services by offering customers a single source for construction materials and related contracting services. We operate in 14 states across the United States through our operating segments: Pacific, Northwest, Mountain, North Central, South and Energy Services. These operating segments are used to determine the Company’s reportable segments, Pacific, Northwest, Mountain, Central and Energy Services, which are based on our method of internal reporting and management of our business. Four of the reportable segments are aligned by key geographic areas due to the production of construction materials and related contracting services and one is based on product line. Each segment is led by a segment manager who reports to the Company’s chief operating officer, who is also the Company's chief operating decision maker, along with the chief executive officer. The chief operating decision maker evaluates the performance of the segments and allocates resources to them based on earnings before interest, taxes, depreciation, depletion and amortization ("EBITDA"). In the fourth quarter of 2023, we realigned our reportable segments to better support our operational strategies. The liquid asphalt and related services portion of the Pacific segment's businesses are now reported under the Energy Services segment. In addition, the North Central and South operating regions have been aggregated into one reportable segment, Central. We also reallocated certain amounts to the operating segments that were previously reported within Corporate Services. All periods have been recast to conform with the revised presentation. Each geographic segment offers a vertically integrated suite of products and services, including aggregates, ready-mix concrete, asphalt and contracting services, while the Energy Services segment produces and supplies liquid asphalt, primarily for use in asphalt road construction, and is a supplier to some of the other segments. Each geographic segment mines, processes and sells construction aggregates (crushed stone and sand and gravel); produces and sells asphalt; and produces and sells ready-mix concrete as well as vertically integrating its contracting services to support the aggregate-based product lines. Contracting services include heavy-civil construction, asphalt and concrete paving, and site development and grading. Although not common to all locations, the geographic segments also sell cement, merchandise and other building materials and related services . Corporate Services represents the unallocated costs of certain corporate functions, such as accounting, legal, treasury, information technology, human resources and other corporate expenses that support the operating segments. We account for intersegment sales and transfers as if the sales or transfers were to third parties. The accounting policies applicable to each segment are consistent with those used in the audited consolidated financial statements. The information below follows the same accounting policies as described in the audited financial statements and notes included in the Company's 2023 Annual Report. Information on the Company's segments was as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands) External operating revenues: Pacific $ 131,827 $ 125,079 $ 210,214 $ 190,722 Northwest 200,225 178,734 319,377 294,654 Mountain 193,769 175,754 253,595 236,372 Central 214,603 231,034 275,565 288,654 Energy Services 66,243 73,063 77,360 81,318 Total reportable segment external operating revenues $ 806,667 $ 783,664 $ 1,136,111 $ 1,091,720 Intersegment operating revenues: Pacific $ 22,013 $ 22,393 $ 35,621 $ 33,197 Northwest 33,494 35,322 48,402 48,254 Mountain 36,778 34,796 40,740 40,710 Central 55,077 61,630 61,173 68,761 Energy Services 13,447 13,706 16,428 15,928 Total reportable segment intersegment operating revenues $ 160,809 $ 167,847 $ 202,364 $ 206,850 EBITDA: Pacific $ 17,789 $ 17,457 $ 17,046 $ 17,605 Northwest 50,762 38,871 70,916 52,868 Mountain 43,119 30,323 37,054 26,570 Central 36,188 28,399 17,466 11,500 Energy Services 19,367 21,781 16,884 18,804 Total reportable segment EBITDA $ 167,225 $ 136,831 $ 159,366 $ 127,347 A reconciliation of consolidated operating revenues to reportable segment operating revenues is as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands) Consolidated operating revenues $ 806,906 $ 785,189 $ 1,136,496 $ 1,093,089 Plus: Intersegment operating revenues 165,081 167,663 211,633 207,248 Less: Corporate Services revenue 4,511 1,341 9,654 1,767 Total reportable segment operating revenues $ 967,476 $ 951,511 $ 1,338,475 $ 1,298,570 A reconciliation of consolidated net income before income taxes to reportable segment EBITDA is as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands) Total consolidated net income before income taxes $ 104,114 $ 76,855 $ 40,160 $ 23,623 Plus: Depreciation, depletion and amortization 34,512 31,130 66,724 60,760 Interest expense, net* 12,809 17,130 23,955 26,625 Less: Corporate Services EBITDA (15,790) (11,716) (28,527) (16,339) Total EBITDA for reportable segments $ 167,225 $ 136,831 $ 159,366 $ 127,347 * Interest, net is interest expense net of interest income. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and 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. We accrue 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. We do 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, we disclose 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 June 30, 2024 and 2023, and December 31, 2023, we accrued contingent liabilities as a result of litigation, which have not been discounted, of $3.2 million, $970,000 and $873,000, respectively. At June 30, 2024 and 2023 and December 31, 2023, we also recorded corresponding insurance receivables of $0, $325,000 and $42,000, respectively, related to the accrued liabilities. Most of these claims and lawsuits are covered by insurance, thus the Company's exposure is typically limited to its deductible amount. Management 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 environmental matters that were previously reported in the audited financial statements and notes included in the Company's 2023 Annual Report. Guarantees Knife River and certain of its subsidiaries have outstanding obligations to third parties where the Company has guaranteed their performance. These guarantees are related to contracts for contracting services and certain other guarantees. At June 30, 2024, the fixed maximum amounts guaranteed under these agreements aggregated to $11.5 million, all of which have 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 June 30, 2024. Knife River and certain of its subsidiaries have outstanding letters of credit to third parties related to insurance policies, cement purchases and other agreements. At June 30, 2024, the fixed maximum amounts guaranteed under these letters of credit aggregated $20.9 million. At June 30, 2024, the amounts of scheduled expiration of the maximum amounts guaranteed under these letters of credit aggregate to $335,000 in 2024, $20.5 million in 2025, $0 in 2026 and $104,000 in 2027. There were no amounts outstanding under the previously mentioned letters of credit at June 30, 2024. In the normal course of business, we have surety bonds related to contracts for contracting services, reclamation obligations and insurance policies of its subsidiaries. In the event a subsidiary of Knife River 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 are expected to expire within the next 12 months; however, we will likely continue to enter into surety bonds for our subsidiaries in the future. At June 30, 2024, approximately $894.2 million of surety bonds were outstanding, which were not reflected on the Consolidated Balance Sheet. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related-party transactions Transition services agreements As part of the Separation, MDU Resources is providing transition services to Knife River and Knife River is providing transition services to MDU Resources in accordance with the Transition Services Agreement entered into on May 30, 2023. The Company paid $413,000 and $599,000 for the three months ended and $1.2 million and $599,000 for the six months ended June 30, 2024 and 2023, respectively, related to these activities, which were reflected in selling, general and administrative expenses on the Consolidated Statements of Operations. The Company received $62,000 and $277,000 for the three months ended and $138,000 and $277,000 for the six months ended June 30, 2024 and 2023, respectively, related to these activities, which were reflected in other income on the Consolidated Statements of Operations. The majority of the transition services were completed over a period of one year after the Separation. The Company expects minimal continued services by Knife River to MDU Resources through May 2025. For additional information on the presentation of related-party transactions, see Note 2. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income (loss) | $ 77,929 | $ (47,629) | $ 56,836 | $ (41,320) | $ 30,301 | $ 15,516 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of presentation (Policies
Basis of presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | The accompanying consolidated interim financial statements were prepared in accordance with accounting principles generally accepted in the United States of America ("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 Company's 2023 Annual Report on Form 10-K ("Annual Report"). 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. Prior to the Separation, Knife River operated as a wholly owned subsidiary of Centennial Energy Holdings, Inc., a direct wholly owned subsidiary of MDU Resources and the direct parent company of Knife River prior to the spinoff ("Centennial") and an indirect, wholly owned subsidiary of MDU Resources and not as a stand-alone company. The accompanying consolidated financial statements and footnotes for the periods prior to the Separation were prepared on a "carve-out" basis using a legal entity approach in conformity with GAAP and were derived from the consolidated financial statements of MDU Resources as if Knife River operated on a stand-alone basis during these periods. All revenues and costs, as well as assets and liabilities, directly associated with our business activities are included in the consolidated financial statements. In the periods prior to the Separation, the consolidated financial statements 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 and other income. For the three and six months ended June 30, 2023, the amount allocated to Knife River was $4.7 million and $9.6 million, respectively, in selling, general and administrative expenses and $300,000 and $600,000, respectively, in other income. These items were allocated 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 were 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. The allocations may not, however, reflect the expenses we would have incurred as a stand-alone company for the periods presented. These costs also may not be indicative of the expenses that we will incur in the future or would have incurred if we had obtained these services from a third party. Management has also evaluated the impact of events occurring after June 30, 2024, up to the date of issuance of these consolidated interim financial statements on August 6, 2024, that would require recognition or disclosure in the Consolidated Financial Statements. |
Principles of consolidation | Principles of consolidation |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires us 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 we 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. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash |
Seasonality of operations | Seasonality of operations Some of our 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 Knife River as a whole, may not be indicative of results for the full fiscal year or other future periods. |
New accounting standards | The following table provides a brief description of the accounting pronouncements applicable to Knife River and the potential impact on its consolidated financial statements and/or disclosures: Standard Description Standard Effective Date Impact on financial statements/disclosures Recently issued Financial Accounting Standards Board (FASB) accounting standards updates ("ASU") not yet adopted ASU 2023-07 - Improvements to Reportable Segment Disclosures In November 2023, the FASB issued guidance on modifying the disclosure requirements to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The guidance also expands the interim disclosure requirements. The guidance is to be applied on a retrospective basis to the financial statements and footnotes and early adoption is permitted. Fiscal periods beginning after December 15, 2023 and interim periods beginning after December 31, 2024 The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2024 and interim periods for fiscal year 2025. ASU 2023-09 - Improvements to Income Tax Disclosures In December 2023, the FASB issued guidance on modifying the disclosure requirements to increase transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance is to be applied on a prospective basis to the financial statements and footnotes, however, retrospective adoption is also permitted. The guidance also permits early adoption. Fiscal periods beginning after December 15, 2024 The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2025. |
Expected credit loss | Receivables consist primarily of trade and contract receivables for the sale of goods and services net of expected credit losses. A majority of our receivables are due in 30 days or less.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. We develop and document our methodology to determine our allowance for expected credit losses. Risk characteristics used by management 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. |
Accounting Standards Update and Change in Accounting Principle | The following table provides a brief description of the accounting pronouncements applicable to Knife River and the potential impact on its consolidated financial statements and/or disclosures: Standard Description Standard Effective Date Impact on financial statements/disclosures Recently issued Financial Accounting Standards Board (FASB) accounting standards updates ("ASU") not yet adopted ASU 2023-07 - Improvements to Reportable Segment Disclosures In November 2023, the FASB issued guidance on modifying the disclosure requirements to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The guidance also expands the interim disclosure requirements. The guidance is to be applied on a retrospective basis to the financial statements and footnotes and early adoption is permitted. Fiscal periods beginning after December 15, 2023 and interim periods beginning after December 31, 2024 The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2024 and interim periods for fiscal year 2025. ASU 2023-09 - Improvements to Income Tax Disclosures In December 2023, the FASB issued guidance on modifying the disclosure requirements to increase transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance is to be applied on a prospective basis to the financial statements and footnotes, however, retrospective adoption is also permitted. The guidance also permits early adoption. Fiscal periods beginning after December 15, 2024 The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2025. |
Net income per share | Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Diluted net income per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of non-vested performance shares and restricted stock units. |
Disaggregation of revenue | Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue includes revenue from the sales of construction materials and contracting services. 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. Knife River is considered an agent for certain taxes collected from customers. As such, we present revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes. Revenue for construction materials is recognized at a point in time when delivery of the products has taken place. Contracting revenue is recognized over time using an input method based on the cost-to-cost measure of progress on a project. |
Fair value measurements | We measure our investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in income. |
Business segment data | Company’s reportable segments, Pacific, Northwest, Mountain, Central and Energy Services, which are based on our method of internal reporting and management of our business. Four of the reportable segments are aligned by key geographic areas due to the production of construction materials and related contracting services and one is based on product line. Each segment is led by a segment manager who reports to the Company’s chief operating officer, who is also the Company's chief operating decision maker, along with the chief executive officer. The chief operating decision maker evaluates the performance of the segments and allocates resources to them based on earnings before interest, taxes, depreciation, depletion and amortization ("EBITDA"). In the fourth quarter of 2023, we realigned our reportable segments to better support our operational strategies. The liquid asphalt and related services portion of the Pacific segment's businesses are now reported under the Energy Services segment. In addition, the North Central and South operating regions have been aggregated into one reportable segment, Central. We also reallocated certain amounts to the operating segments that were previously reported within Corporate Services. All periods have been recast to conform with the revised presentation. |
Commitments and 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. We accrue 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. We do 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, we disclose 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. |
Basis of presentation (Tables)
Basis of presentation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | Restricted cash represents deposits held by our captive insurance company that is required by state insurance regulations to remain in the captive insurance company. Cash, cash equivalents and restricted cash on the Consolidated Balance Sheets is comprised of: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Cash and cash equivalents $ 15,468 $ 40,089 $ 219,324 Restricted cash 41,701 28,400 42,996 Cash, cash equivalents and restricted cash $ 57,169 $ 68,489 $ 262,320 |
Restrictions on Cash and Cash Equivalents | Restricted cash represents deposits held by our captive insurance company that is required by state insurance regulations to remain in the captive insurance company. Cash, cash equivalents and restricted cash on the Consolidated Balance Sheets is comprised of: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Cash and cash equivalents $ 15,468 $ 40,089 $ 219,324 Restricted cash 41,701 28,400 42,996 Cash, cash equivalents and restricted cash $ 57,169 $ 68,489 $ 262,320 |
New accounting standards (Table
New accounting standards (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | The following table provides a brief description of the accounting pronouncements applicable to Knife River and the potential impact on its consolidated financial statements and/or disclosures: Standard Description Standard Effective Date Impact on financial statements/disclosures Recently issued Financial Accounting Standards Board (FASB) accounting standards updates ("ASU") not yet adopted ASU 2023-07 - Improvements to Reportable Segment Disclosures In November 2023, the FASB issued guidance on modifying the disclosure requirements to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The guidance also expands the interim disclosure requirements. The guidance is to be applied on a retrospective basis to the financial statements and footnotes and early adoption is permitted. Fiscal periods beginning after December 15, 2023 and interim periods beginning after December 31, 2024 The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2024 and interim periods for fiscal year 2025. ASU 2023-09 - Improvements to Income Tax Disclosures In December 2023, the FASB issued guidance on modifying the disclosure requirements to increase transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance is to be applied on a prospective basis to the financial statements and footnotes, however, retrospective adoption is also permitted. The guidance also permits early adoption. Fiscal periods beginning after December 15, 2024 The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2025. |
Receivables and allowance for_2
Receivables and allowance for expected credit losses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Credit Loss [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables were as follows: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Trade receivables $ 206,673 $ 220,948 $ 124,134 Contract receivables 188,120 173,318 112,037 Retention receivables 32,649 30,224 36,782 Receivables, gross 427,442 424,490 272,953 Less expected credit loss 4,501 5,870 6,168 Receivables, net $ 422,941 $ 418,620 $ 266,785 |
Accounts Receivable, Allowance for Credit Loss | Details of the Company's expected credit losses were as follows: Pacific Northwest Mountain Central Energy Services Total (In thousands) As of December 31, 2023 $ 2,053 $ 1,004 $ 2,293 $ 718 $ 100 $ 6,168 Current expected credit loss provision 177 (223) (47) 87 — (6) Less write-offs charged against the allowance (53) 133 2 3 — 85 At March 31, 2024 $ 2,283 $ 648 $ 2,244 $ 802 $ 100 $ 6,077 Current expected credit loss provision 25 79 27 151 1 283 Less write-offs charged against the allowance 513 11 1,122 212 1 1,859 At June 30, 2024 $ 1,795 $ 716 $ 1,149 $ 741 $ 100 $ 4,501 Pacific Northwest Mountain Central Energy Services Total (In thousands) As of December 31, 2022 $ 1,945 $ 1,253 $ 1,278 $ 901 $ 100 $ 5,477 Current expected credit loss provision 45 313 164 (90) — 432 Less write-offs charged against the allowance 1 68 18 — — 87 At March 31, 2023 $ 1,989 $ 1,498 $ 1,424 $ 811 $ 100 $ 5,822 Current expected credit loss provision 8 74 631 (131) 1 583 Less write-offs charged against the allowance 17 512 3 2 1 535 At June 30, 2023 $ 1,980 $ 1,060 $ 2,052 $ 678 $ 100 $ 5,870 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories on the Consolidated Balance Sheets were as follows: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Finished products $ 245,983 $ 227,683 $ 225,319 Raw materials 100,029 104,689 61,776 Supplies and parts 39,366 42,005 32,528 Total $ 385,378 $ 374,377 $ 319,623 |
Net income per share (Tables)
Net income per share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Basic and diluted net income per share are calculated as follows, based on a reconciliation of the weighted-average common shares outstanding on a basic and diluted basis: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands, except per share amounts) Net income $ 77,929 $ 56,836 $ 30,301 $ 15,516 Weighted average common shares outstanding - basic 56,611 56,566 56,601 56,566 Effect of dilutive performance shares and restricted stock units 200 33 190 17 Weighted average common shares outstanding - diluted 56,811 56,599 56,791 56,583 Shares excluded from the calculation of diluted loss per share 16 — 21 — Net income per share - basic $ 1.38 $ 1.00 $ .54 $ .27 Net income per share - diluted $ 1.37 $ 1.00 $ .53 $ .27 |
Accumulated other comprehensi_2
Accumulated other comprehensive loss (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of 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) As of December 31, 2023 $ — $ (11,319) $ (11,319) Amounts reclassified from accumulated other comprehensive loss — 78 78 Net current-period other comprehensive income — 78 78 At March 31, 2024 $ — $ (11,241) $ (11,241) Amounts reclassified from accumulated other comprehensive loss — 77 77 Net current-period other comprehensive income — 77 77 At June 30, 2024 $ — $ (11,164) $ (11,164) Net Unrealized Postretirement Total (In thousands) As of 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) Other comprehensive loss before reclassification — (17) (17) Amounts reclassified from accumulated other comprehensive loss 44 48 92 Net current-period other comprehensive income 44 31 75 At June 30, 2023 $ — $ (12,184) $ (12,184) |
Reclassification out of Accumulated Other Comprehensive Loss | The following amounts were reclassified out of accumulated other comprehensive loss into net income. The amounts presented in parenthesis indicate a decrease to net income on the Consolidated Statements of Operations. The reclassifications were as follows: Three Months Ended Six Months Ended Location on Consolidated Statements of Operations June 30, June 30, 2024 2023 2024 2023 (In thousands) Reclassification adjustment for loss on derivative instruments included in net income $ — $ (57) $ — $ (118) Interest expense — 13 — 28 Income taxes — (44) — (90) Amortization of postretirement liability losses included in net periodic benefit cost (102) (63) (205) (126) Other income 25 15 50 31 Income taxes (77) (48) (155) (95) Total reclassifications $ (77) $ (92) $ (155) $ (185) |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Three Months Ended June 30, 2024 Pacific Northwest Mountain Central Energy Services Corporate Services and Eliminations Total (In thousands) Aggregates $ 31,259 $ 53,061 $ 31,138 $ 42,943 $ — $ — $ 158,401 Ready-mix concrete 36,667 45,660 34,967 62,225 — — 179,519 Asphalt 8,622 32,529 32,860 45,268 — — 119,279 Liquid asphalt — — — — 65,304 — 65,304 Other 42,357 5,574 7 10,875 14,386 4,511 77,710 Contracting services public-sector 20,713 71,299 90,023 102,820 — — 284,855 Contracting services private-sector 14,222 25,596 41,552 5,549 — — 86,919 Internal sales (22,013) (33,494) (36,778) (55,077) (13,447) (4,272) (165,081) Revenues from contracts with customers $ 131,827 $ 200,225 $ 193,769 $ 214,603 $ 66,243 $ 239 $ 806,906 Three Months Ended June 30, 2023 Pacific Northwest Mountain Central Energy Services Corporate Services and Eliminations Total (In thousands) Aggregates $ 27,446 $ 47,966 $ 28,866 $ 42,138 $ — $ — $ 146,416 Ready-mix concrete 40,526 44,583 34,506 65,283 — — 184,898 Asphalt 6,275 34,518 29,472 54,672 — — 124,937 Liquid asphalt — — — — 72,920 — 72,920 Other 39,802 4,335 8 10,909 13,849 1,341 70,244 Contracting services public-sector 16,848 53,301 80,381 114,025 — — 264,555 Contracting services private-sector 16,575 29,353 37,317 5,637 — — 88,882 Internal sales (22,393) (35,322) (34,796) (61,630) (13,706) 184 (167,663) Revenues from contracts with customers $ 125,079 $ 178,734 $ 175,754 $ 231,034 $ 73,063 $ 1,525 $ 785,189 Six Months Ended June 30, 2024 Pacific Northwest Mountain Central Energy Services Corporate Services and Eliminations Total (In thousands) Aggregates $ 50,809 $ 92,459 $ 40,592 $ 58,814 $ — $ — $ 242,674 Ready-mix concrete 67,887 77,436 48,803 85,248 — — 279,374 Asphalt 10,969 40,766 33,690 50,326 — — 135,751 Liquid asphalt — — — — 76,340 — 76,340 Other 67,686 9,147 13 12,773 17,448 9,654 116,721 Contracting services public-sector 26,188 107,343 115,882 123,853 — — 373,266 Contracting services private-sector 22,296 40,628 55,355 5,724 — — 124,003 Internal sales (35,621) (48,402) (40,740) (61,173) (16,428) (9,269) (211,633) Revenues from contracts with customers $ 210,214 $ 319,377 $ 253,595 $ 275,565 $ 77,360 $ 385 $ 1,136,496 Six Months Ended June 30, 2023 Pacific Northwest Mountain Central Energy Services Corporate Services and Eliminations Total (In thousands) Aggregates $ 46,143 $ 90,540 $ 38,532 $ 54,722 $ — $ — $ 229,937 Ready-mix concrete 66,670 78,488 48,876 87,633 — — 281,667 Asphalt 7,591 41,445 30,282 59,238 — — 138,556 Liquid asphalt — — — — 81,206 — 81,206 Other 63,222 7,016 11 12,495 16,040 1,767 100,551 Contracting services public-sector 20,819 70,304 108,619 136,885 — — 336,627 Contracting services private-sector 19,474 55,115 50,762 6,442 — — 131,793 Internal sales (33,197) (48,254) (40,710) (68,761) (15,928) (398) (207,248) Revenues from contracts with customers $ 190,722 $ 294,654 $ 236,372 $ 288,654 $ 81,318 $ 1,369 $ 1,093,089 |
Uncompleted contracts (Tables)
Uncompleted contracts (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The changes in contract assets and liabilities were as follows: June 30, 2024 December 31, 2023 Change Location on Consolidated Balance Sheets (In thousands) Contract assets $ 49,150 $ 27,293 $ 21,857 Costs and estimated earnings in excess of billings on uncompleted contracts Contract liabilities (45,123) (51,376) 6,253 Billings in excess of costs and estimated earnings on uncompleted contracts Net contract assets (liabilities) $ 4,027 $ (24,083) $ 28,110 June 30, 2023 December 31, 2022 Change Location on Consolidated Balance Sheets (In thousands) Contract assets $ 58,020 $ 31,145 $ 26,875 Costs and estimated earnings in excess of billings on uncompleted contracts Contract liabilities (44,590) (39,843) (4,747) Billings in excess of costs and estimated earnings on uncompleted contracts Net contract assets (liabilities) $ 13,430 $ (8,698) $ 22,128 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill were as follows: Balance at January 1, 2024 Goodwill Acquired During the Year Measurement Period Adjustments Reallocation of Goodwill Balance at June 30, 2024 (In thousands) Pacific $ 32,621 $ — $ — $ — $ 32,621 Northwest 90,978 — — — 90,978 Mountain 26,816 — — — 26,816 North Central 75,879 735 — — 76,614 South 38,708 — — — 38,708 Energy Services 9,476 — — — 9,476 Total $ 274,478 $ 735 $ — $ — $ 275,213 Balance at January 1, 2023 Goodwill Acquired During the Year Measurement Period Adjustments Reallocation of Goodwill Balance at June 30, 2023 (In thousands) Pacific $ 38,339 $ — $ (62) $ — $ 38,277 Northwest 90,978 — — — 90,978 Mountain 26,816 — — — 26,816 North Central 75,879 — — — 75,879 South 38,708 — — — 38,708 Energy Services 3,820 — — — 3,820 Total $ 274,540 $ — $ (62) $ — $ 274,478 Balance at January 1, 2023 Goodwill Acquired During the Year Measurement Period Adjustments Reallocation of Goodwill Balance at December 31, 2023 (In thousands) Pacific $ 38,339 $ — $ (62) $ (5,656) $ 32,621 Northwest 90,978 — — — 90,978 Mountain 26,816 — — — 26,816 North Central 75,879 — — — 75,879 South 38,708 — — — 38,708 Energy Services 3,820 — — 5,656 9,476 Total $ 274,540 $ — $ (62) $ — $ 274,478 |
Schedule of Finite-Lived Intangible Assets | Other amortizable intangible assets were as follows: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Customer relationships $ 18,868 $ 18,540 $ 18,540 Less accumulated amortization 9,977 8,235 9,102 8,891 10,305 9,438 Noncompete agreements 3,784 4,039 4,039 Less accumulated amortization 3,283 3,239 3,473 501 800 566 Other 1,796 2,479 2,479 Less accumulated amortization 1,044 1,474 1,662 752 1,005 817 Total $ 10,144 $ 12,110 $ 10,821 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for identifiable intangible assets as of June 30, 2024, was: Remainder of 2024 2025 2026 2027 2028 Thereafter (In thousands) Amortization expense $ 1,192 $ 1,964 $ 1,784 $ 1,761 $ 1,717 $ 1,726 |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company's assets measured at fair value on a recurring basis were as follows: Fair Value Measurements at June 30, 2024, Using Quoted Prices in Significant Significant Balance at June 30, 2024 (In thousands) Assets: Money market funds $ — $ 3,982 $ — $ 3,982 Insurance contracts* — 27,289 — 27,289 Total assets measured at fair value $ — $ 31,271 $ — $ 31,271 * The insurance contracts invest approximately 36 percent in fixed-income investments, 23 percent in common stock of large-cap companies, 15 percent in cash equivalents, 9 percent in common stock of mid-cap companies, 9 percent target date investments, 5 percent in common stock of small-cap companies, 1 percent in international investments, 1 percent in real estate investments and 1 percent in high yield investments. Fair Value Measurements at June 30, 2023, Using Quoted Prices in Significant Significant Balance at June 30, 2023 (In thousands) Assets: Money market funds $ — $ 7,529 $ — $ 7,529 Insurance contracts* — 19,141 — 19,141 Total assets measured at fair value $ — $ 26,670 $ — $ 26,670 * The insurance contracts invest approximately 47 percent in fixed-income investments, 20 percent in cash equivalents, 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 and 4 percent target date investments. Fair Value Measurements at December 31, 2023, Using Quoted Prices in Significant Significant Balance at December 31, 2023 (In thousands) Assets: Money market funds $ — $ 3,241 $ — $ 3,241 Insurance contracts* — 24,896 — 24,896 Total assets measured at fair value $ — $ 28,137 $ — $ 28,137 * The insurance contracts invest approximately 40 percent in fixed-income investments, 19 percent in common stock of large-cap companies, 18 percent in cash equivalents, 8 percent in target date investments, 8 percent in common stock of mid-cap companies, 6 percent in common stock of small-cap companies and 1 percent in international investments. |
Fair Value, by Balance Sheet Grouping | The estimated fair value of the Company's Level 2 long-term debt was as follows: June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Carrying amount $ 693,483 $ 855,000 $ 696,985 Fair value $ 712,852 $ 862,420 $ 725,086 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Long-term debt outstanding was as follows: Weighted Average Interest Rate at June 30, 2024 June 30, 2024 June 30, 2023 December 31, 2023 (In thousands) Term loan agreement due on May 31, 2028 7.20 % $ 268,125 $ 275,000 $ 271,562 Revolving credit agreement — % — 155,000 — Senior notes due on May 1, 2031 7.75 % 425,000 425,000 425,000 Other notes due on January 1, 2061 — % 358 511 423 Less unamortized debt issuance costs 13,945 16,382 15,326 Total long-term debt 679,538 839,129 681,659 Less current maturities 7,072 7,082 7,082 Net long-term debt $ 672,466 $ 832,047 $ 674,577 |
Schedule of Maturities of Long-Term Debt | Long-term debt maturities, which excludes unamortized debt issuance costs, at June 30, 2024, were as follows: Remainder of 2024 2025 2026 2027 2028 Thereafter (In thousands) Long-term debt maturities $ 3,634 $ 10,473 $ 13,750 $ 17,188 $ 223,438 $ 425,000 |
Cash flow information (Tables)
Cash flow information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Cash expenditures for interest and income taxes were as follows: Six Months Ended June 30, 2024 2023 (In thousands) Interest paid, net $ 27,993 $ 24,802 Income taxes paid, net $ 1,662 $ 558 Noncash investing and financing transactions were as follows: Six Months Ended June 30, 2024 2023 (In thousands) Right-of-use assets obtained in exchange for new operating lease liabilities $ 10,844 $ 7,552 Property, plant and equipment additions in accounts payable $ 5,098 $ 3,359 Equity contribution from Centennial related to the Separation $ — $ 64,724 Equity contribution to MDU Resources for asset/liability transfers related to the Separation $ — $ (1,548) MDU Resources' stock issued prior to spin in connection with a business combination $ — $ 383 |
Business segment data (Tables)
Business segment data (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The information below follows the same accounting policies as described in the audited financial statements and notes included in the Company's 2023 Annual Report. Information on the Company's segments was as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands) External operating revenues: Pacific $ 131,827 $ 125,079 $ 210,214 $ 190,722 Northwest 200,225 178,734 319,377 294,654 Mountain 193,769 175,754 253,595 236,372 Central 214,603 231,034 275,565 288,654 Energy Services 66,243 73,063 77,360 81,318 Total reportable segment external operating revenues $ 806,667 $ 783,664 $ 1,136,111 $ 1,091,720 Intersegment operating revenues: Pacific $ 22,013 $ 22,393 $ 35,621 $ 33,197 Northwest 33,494 35,322 48,402 48,254 Mountain 36,778 34,796 40,740 40,710 Central 55,077 61,630 61,173 68,761 Energy Services 13,447 13,706 16,428 15,928 Total reportable segment intersegment operating revenues $ 160,809 $ 167,847 $ 202,364 $ 206,850 EBITDA: Pacific $ 17,789 $ 17,457 $ 17,046 $ 17,605 Northwest 50,762 38,871 70,916 52,868 Mountain 43,119 30,323 37,054 26,570 Central 36,188 28,399 17,466 11,500 Energy Services 19,367 21,781 16,884 18,804 Total reportable segment EBITDA $ 167,225 $ 136,831 $ 159,366 $ 127,347 |
Reconciliation of Revenue from Segments to Consolidated | A reconciliation of consolidated operating revenues to reportable segment operating revenues is as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands) Consolidated operating revenues $ 806,906 $ 785,189 $ 1,136,496 $ 1,093,089 Plus: Intersegment operating revenues 165,081 167,663 211,633 207,248 Less: Corporate Services revenue 4,511 1,341 9,654 1,767 Total reportable segment operating revenues $ 967,476 $ 951,511 $ 1,338,475 $ 1,298,570 |
Segment, Reconciliation of Other Items from Segments to Consolidated | A reconciliation of consolidated net income before income taxes to reportable segment EBITDA is as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands) Total consolidated net income before income taxes $ 104,114 $ 76,855 $ 40,160 $ 23,623 Plus: Depreciation, depletion and amortization 34,512 31,130 66,724 60,760 Interest expense, net* 12,809 17,130 23,955 26,625 Less: Corporate Services EBITDA (15,790) (11,716) (28,527) (16,339) Total EBITDA for reportable segments $ 167,225 $ 136,831 $ 159,366 $ 127,347 * Interest, net is interest expense net of interest income. |
Background (Details)
Background (Details) | 1 Months Ended | 6 Months Ended | |||
Nov. 30, 2023 shares | Jun. 30, 2024 reportableSegment state $ / shares | Dec. 31, 2023 $ / shares | Jun. 30, 2023 $ / shares | May 31, 2023 $ / shares | |
Organization [Line Items] | |||||
Number of states in which entity operates | state | 14 | ||||
Number of reportable segments | reportableSegment | 5 | ||||
Separation transaction, percent of outstanding shares distributed | 90% | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |
Separation transaction, outstanding shares distributed (in shares) | shares | 5,656,621 | ||||
Separation transaction, distribution ratio | 0.25 | ||||
Knife River | |||||
Organization [Line Items] | |||||
Subsidiary, ownership percentage, noncontrolling owner | 10% |
Basis of presentation - Narrati
Basis of presentation - Narrative (Details) - Related Party - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Selling, General and Administrative Expenses | ||
Accounting Policies [Line Items] | ||
Costs and expenses, related party | $ 4,700 | $ 9,600 |
Other Nonoperating Income (Expense) | ||
Accounting Policies [Line Items] | ||
Costs and expenses, related party | $ 300 | $ 600 |
Basis of presentation - Schedul
Basis of presentation - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 15,468 | $ 219,324 | $ 40,089 | |
Restricted cash | 41,701 | 42,996 | 28,400 | |
Cash, cash equivalents and restricted cash | $ 57,169 | $ 262,320 | $ 68,489 | $ 10,090 |
Receivables and allowance for_3
Receivables and allowance for expected credit losses - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Credit Loss [Abstract] | |||
Accounts receivable, noncurrent, 90 days or more past due, still accruing | $ 7.4 | $ 16.7 | $ 11.6 |
Receivables and allowance for_4
Receivables and allowance for expected credit losses - Summary of Receivables (Details) - Trade Accounts Receivable - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Trade receivables | $ 206,673 | $ 124,134 | $ 220,948 | |||
Contract receivables | 188,120 | 112,037 | 173,318 | |||
Retention receivables | 32,649 | 36,782 | 30,224 | |||
Receivables, gross | 427,442 | 272,953 | 424,490 | |||
Less expected credit loss | 4,501 | $ 6,077 | 6,168 | 5,870 | $ 5,822 | $ 5,477 |
Receivables, net | $ 422,941 | $ 266,785 | $ 418,620 |
Receivables and allowance for_5
Receivables and allowance for expected credit losses - Details of Expected Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Current expected credit loss provision | $ 277 | $ 1,015 | ||||
Trade Accounts Receivable | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | $ 6,077 | $ 6,168 | $ 5,822 | $ 5,477 | 6,168 | 5,477 |
Current expected credit loss provision | 283 | (6) | 583 | 432 | ||
Less write-offs charged against the allowance | 1,859 | 85 | 535 | 87 | ||
Ending balance | 4,501 | 6,077 | 5,870 | 5,822 | 4,501 | 5,870 |
Pacific | Trade Accounts Receivable | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 2,283 | 2,053 | 1,989 | 1,945 | 2,053 | 1,945 |
Current expected credit loss provision | 25 | 177 | 8 | 45 | ||
Less write-offs charged against the allowance | 513 | (53) | 17 | 1 | ||
Ending balance | 1,795 | 2,283 | 1,980 | 1,989 | 1,795 | 1,980 |
Northwest | Trade Accounts Receivable | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 648 | 1,004 | 1,498 | 1,253 | 1,004 | 1,253 |
Current expected credit loss provision | 79 | (223) | 74 | 313 | ||
Less write-offs charged against the allowance | 11 | 133 | 512 | 68 | ||
Ending balance | 716 | 648 | 1,060 | 1,498 | 716 | 1,060 |
Mountain | Trade Accounts Receivable | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 2,244 | 2,293 | 1,424 | 1,278 | 2,293 | 1,278 |
Current expected credit loss provision | 27 | (47) | 631 | 164 | ||
Less write-offs charged against the allowance | 1,122 | 2 | 3 | 18 | ||
Ending balance | 1,149 | 2,244 | 2,052 | 1,424 | 1,149 | 2,052 |
Central | Trade Accounts Receivable | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 802 | 718 | 811 | 901 | 718 | 901 |
Current expected credit loss provision | 151 | 87 | (131) | (90) | ||
Less write-offs charged against the allowance | 212 | 3 | 2 | 0 | ||
Ending balance | 741 | 802 | 678 | 811 | 741 | 678 |
Energy Services | Trade Accounts Receivable | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 100 | 100 | 100 | 100 | 100 | 100 |
Current expected credit loss provision | 1 | 0 | 1 | 0 | ||
Less write-offs charged against the allowance | 1 | 0 | 1 | 0 | ||
Ending balance | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Inventory Disclosure [Abstract] | |||
Finished products | $ 245,983 | $ 225,319 | $ 227,683 |
Raw materials | 100,029 | 61,776 | 104,689 |
Supplies and parts | 39,366 | 32,528 | 42,005 |
Total | $ 385,378 | $ 319,623 | $ 374,377 |
Net income per share- Narrative
Net income per share- Narrative (Details) - shares | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Earnings Per Share [Abstract] | |||
Common stock, issued (in shares) | 57,043,841 | 57,009,542 | 56,997,350 |
Treasury stock held at cost (in shares) | 431,136 | 431,136 | 431,136 |
Net income per share- Reconcili
Net income per share- Reconciliation of the Weighted-Average Common Shares Outstanding on a Basic and Diluted Basis (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||||
Net income (loss) | $ 77,929 | $ (47,629) | $ 56,836 | $ (41,320) | $ 30,301 | $ 15,516 |
Weighted average common shares outstanding - basic (in shares) | 56,611 | 56,566 | 56,601 | 56,566 | ||
Effect of dilutive performance shares and restricted stock units (in shares) | 200 | 33 | 190 | 17 | ||
Weighted average common shares outstanding - diluted (in shares) | 56,811 | 56,599 | 56,791 | 56,583 | ||
Shares excluded from the calculation of diluted loss per share (in shares) | 16 | 0 | 21 | 0 | ||
Net income per share - basic (in dollars per share) | $ 1.38 | $ 1 | $ 0.54 | $ 0.27 | ||
Net income per share - diluted (in dollars per share) | $ 1.37 | $ 1 | $ 0.53 | $ 0.27 |
Accumulated other comprehensi_3
Accumulated other comprehensive loss - After-Tax Changes in the Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Accumulated other comprehensive loss [Roll Forward] | ||||
Beginning balance | $ 1,218,627 | $ 1,266,012 | $ 974,769 | $ 1,028,589 |
Ending balance | 1,298,706 | 1,218,627 | 1,094,852 | 974,769 |
Net Unrealized Loss on Derivative Instruments Qualifying as Hedges | ||||
Accumulated other comprehensive loss [Roll Forward] | ||||
Beginning balance | 0 | 0 | (44) | (90) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 44 | 46 |
Net current-period other comprehensive income | 0 | 0 | 44 | 46 |
Other comprehensive loss before reclassification | 0 | |||
Ending balance | 0 | 0 | 0 | (44) |
Postretirement Liability Adjustment | ||||
Accumulated other comprehensive loss [Roll Forward] | ||||
Beginning balance | (11,241) | (11,319) | (12,215) | (12,262) |
Amounts reclassified from accumulated other comprehensive loss | 77 | 78 | 48 | 47 |
Net current-period other comprehensive income | 77 | 78 | 31 | 47 |
Other comprehensive loss before reclassification | (17) | |||
Ending balance | (11,164) | (11,241) | (12,184) | (12,215) |
Total Accumulated Other Comprehensive Loss | ||||
Accumulated other comprehensive loss [Roll Forward] | ||||
Beginning balance | (11,241) | (11,319) | (12,259) | (12,352) |
Amounts reclassified from accumulated other comprehensive loss | 77 | 78 | 92 | 93 |
Net current-period other comprehensive income | 77 | 78 | 75 | 93 |
Other comprehensive loss before reclassification | (17) | |||
Ending balance | $ (11,164) | $ (11,241) | $ (12,184) | $ (12,259) |
Accumulated other comprehensi_4
Accumulated other comprehensive loss - Reclassification out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification adjustment out of accumulated other comprehensive loss [Line Items] | ||||||
Interest expense | $ (13,936) | $ (19,156) | $ (27,912) | $ (28,651) | ||
Income taxes | (26,185) | (20,019) | (9,859) | (8,107) | ||
Other income | 1,304 | 2,478 | 5,054 | 3,304 | ||
Net income (loss) | 77,929 | $ (47,629) | 56,836 | $ (41,320) | 30,301 | 15,516 |
Reclassification out of accumulated other comprehensive loss | ||||||
Reclassification adjustment out of accumulated other comprehensive loss [Line Items] | ||||||
Net income (loss) | (77) | (92) | (155) | (185) | ||
Net Unrealized Loss on Derivative Instruments Qualifying as Hedges | Reclassification out of accumulated other comprehensive loss | Interest rate contract | ||||||
Reclassification adjustment out of accumulated other comprehensive loss [Line Items] | ||||||
Interest expense | 0 | (57) | 0 | (118) | ||
Income taxes | 0 | 13 | 0 | 28 | ||
Net income (loss) | 0 | (44) | 0 | (90) | ||
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 taxes | 25 | 15 | 50 | 31 | ||
Other income | (102) | (63) | (205) | (126) | ||
Net income (loss) | $ (77) | $ (48) | $ (155) | $ (95) |
Revenue from contracts with c_3
Revenue from contracts with customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 806,906 | $ 785,189 | $ 1,136,496 | $ 1,093,089 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 806,667 | 783,664 | 1,136,111 | 1,091,720 |
Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (165,081) | (167,663) | (211,633) | (207,248) |
Aggregates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 158,401 | 146,416 | 242,674 | 229,937 |
Ready-mix concrete | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 179,519 | 184,898 | 279,374 | 281,667 |
Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 119,279 | 124,937 | 135,751 | 138,556 |
Liquid Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 65,304 | 72,920 | 76,340 | 81,206 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 77,710 | 70,244 | 116,721 | 100,551 |
Contracting services public-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 284,855 | 264,555 | 373,266 | 336,627 |
Contracting services private-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 86,919 | 88,882 | 124,003 | 131,793 |
Pacific | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 131,827 | 125,079 | 210,214 | 190,722 |
Pacific | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (22,013) | (22,393) | (35,621) | (33,197) |
Pacific | Aggregates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31,259 | 27,446 | 50,809 | 46,143 |
Pacific | Ready-mix concrete | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36,667 | 40,526 | 67,887 | 66,670 |
Pacific | Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,622 | 6,275 | 10,969 | 7,591 |
Pacific | Liquid Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Pacific | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 42,357 | 39,802 | 67,686 | 63,222 |
Pacific | Contracting services public-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,713 | 16,848 | 26,188 | 20,819 |
Pacific | Contracting services private-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,222 | 16,575 | 22,296 | 19,474 |
Northwest | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 200,225 | 178,734 | 319,377 | 294,654 |
Northwest | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (33,494) | (35,322) | (48,402) | (48,254) |
Northwest | Aggregates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 53,061 | 47,966 | 92,459 | 90,540 |
Northwest | Ready-mix concrete | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 45,660 | 44,583 | 77,436 | 78,488 |
Northwest | Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32,529 | 34,518 | 40,766 | 41,445 |
Northwest | Liquid Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Northwest | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,574 | 4,335 | 9,147 | 7,016 |
Northwest | Contracting services public-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 71,299 | 53,301 | 107,343 | 70,304 |
Northwest | Contracting services private-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 25,596 | 29,353 | 40,628 | 55,115 |
Mountain | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 193,769 | 175,754 | 253,595 | 236,372 |
Mountain | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (36,778) | (34,796) | (40,740) | (40,710) |
Mountain | Aggregates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31,138 | 28,866 | 40,592 | 38,532 |
Mountain | Ready-mix concrete | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 34,967 | 34,506 | 48,803 | 48,876 |
Mountain | Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32,860 | 29,472 | 33,690 | 30,282 |
Mountain | Liquid Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Mountain | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7 | 8 | 13 | 11 |
Mountain | Contracting services public-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 90,023 | 80,381 | 115,882 | 108,619 |
Mountain | Contracting services private-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 41,552 | 37,317 | 55,355 | 50,762 |
Central | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 214,603 | 231,034 | 275,565 | 288,654 |
Central | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (55,077) | (61,630) | (61,173) | (68,761) |
Central | Aggregates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 42,943 | 42,138 | 58,814 | 54,722 |
Central | Ready-mix concrete | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 62,225 | 65,283 | 85,248 | 87,633 |
Central | Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 45,268 | 54,672 | 50,326 | 59,238 |
Central | Liquid Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Central | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,875 | 10,909 | 12,773 | 12,495 |
Central | Contracting services public-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 102,820 | 114,025 | 123,853 | 136,885 |
Central | Contracting services private-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,549 | 5,637 | 5,724 | 6,442 |
Energy Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 66,243 | 73,063 | 77,360 | 81,318 |
Energy Services | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (13,447) | (13,706) | (16,428) | (15,928) |
Energy Services | Aggregates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Energy Services | Ready-mix concrete | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Energy Services | Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Energy Services | Liquid Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 65,304 | 72,920 | 76,340 | 81,206 |
Energy Services | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,386 | 13,849 | 17,448 | 16,040 |
Energy Services | Contracting services public-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Energy Services | Contracting services private-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate Services and Eliminations | Corporate, Non-Segment & Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 239 | 1,525 | 385 | 1,369 |
Corporate Services and Eliminations | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (4,272) | 184 | (9,269) | (398) |
Corporate Services and Eliminations | Aggregates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate Services and Eliminations | Ready-mix concrete | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate Services and Eliminations | Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate Services and Eliminations | Liquid Asphalt | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate Services and Eliminations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,511 | 1,341 | 9,654 | 1,767 |
Corporate Services and Eliminations | Contracting services public-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate Services and Eliminations | Contracting services private-sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Uncompleted contracts - Changes
Uncompleted contracts - Changes in Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Contract assets | $ 49,150 | $ 58,020 | $ 27,293 | $ 31,145 |
Change in contract assets | 21,857 | 26,875 | ||
Billings in excess of costs and estimated earnings on uncompleted contracts | (45,123) | (44,590) | (51,376) | (39,843) |
Change in contract liabilities | 6,253 | (4,747) | ||
Net contract assets (liabilities) | 4,027 | 13,430 | $ (24,083) | $ (8,698) |
Change in net contract assets (liabilities) | $ 28,110 | $ 22,128 |
Uncompleted contracts - Narrati
Uncompleted contracts - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Amounts included in contract liability at the beginning of the period | $ 14.4 | $ 11.4 | $ 44.9 | $ 31.7 |
Contract with customer, performance obligation satisfied in previous period | 15.1 | $ 7.4 | 21.2 | $ 8.1 |
Remaining performance obligations | 988.5 | 988.5 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | Revenue, Description Of Timing, 13 To 24 Months | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations | 44 | 44 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | Revenue, Description Of Timing, 25 Months Or More | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations | $ 7.8 | $ 7.8 | ||
Remaining performance obligations, expected timing | 25 months | 25 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | Revenue, Description Of Timing, 12 Months | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations | $ 936.7 | $ 936.7 | ||
Remaining performance obligations, expected timing | 12 months | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | Minimum | Revenue, Description Of Timing, 13 To 24 Months | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations, expected timing | 13 months | 13 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | Maximum | Revenue, Description Of Timing, 13 To 24 Months | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations, expected timing | 24 months | 24 months |
Goodwill and other intangible_3
Goodwill and other intangible assets - Goodwill Rollforward (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 274,478 | $ 274,540 | $ 274,540 |
Goodwill Acquired During the Year | 735 | 0 | 0 |
Measurement Period Adjustments | 0 | (62) | (62) |
Reallocation of Goodwill | 0 | 0 | 0 |
Goodwill, ending balance | 275,213 | 274,478 | 274,478 |
Pacific | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 32,621 | 38,339 | 38,339 |
Goodwill Acquired During the Year | 0 | 0 | 0 |
Measurement Period Adjustments | 0 | (62) | (62) |
Reallocation of Goodwill | 0 | 0 | (5,656) |
Goodwill, ending balance | 32,621 | 38,277 | 32,621 |
Northwest | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 90,978 | 90,978 | 90,978 |
Goodwill Acquired During the Year | 0 | 0 | 0 |
Measurement Period Adjustments | 0 | 0 | 0 |
Reallocation of Goodwill | 0 | 0 | 0 |
Goodwill, ending balance | 90,978 | 90,978 | 90,978 |
Mountain | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 26,816 | 26,816 | 26,816 |
Goodwill Acquired During the Year | 0 | 0 | 0 |
Measurement Period Adjustments | 0 | 0 | 0 |
Reallocation of Goodwill | 0 | 0 | 0 |
Goodwill, ending balance | 26,816 | 26,816 | 26,816 |
North Central | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 75,879 | 75,879 | 75,879 |
Goodwill Acquired During the Year | 735 | 0 | 0 |
Measurement Period Adjustments | 0 | 0 | 0 |
Reallocation of Goodwill | 0 | 0 | 0 |
Goodwill, ending balance | 76,614 | 75,879 | 75,879 |
South | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 38,708 | 38,708 | 38,708 |
Goodwill Acquired During the Year | 0 | 0 | 0 |
Measurement Period Adjustments | 0 | 0 | 0 |
Reallocation of Goodwill | 0 | 0 | 0 |
Goodwill, ending balance | 38,708 | 38,708 | 38,708 |
Energy Services | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 9,476 | 3,820 | 3,820 |
Goodwill Acquired During the Year | 0 | 0 | 0 |
Measurement Period Adjustments | 0 | 0 | 0 |
Reallocation of Goodwill | 0 | 0 | 5,656 |
Goodwill, ending balance | $ 9,476 | $ 3,820 | $ 9,476 |
Goodwill and other intangible_4
Goodwill and other intangible assets - Other Amortizable Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Finite-Lived Intangible Assets [Line Items] | |||
Total | $ 10,144 | $ 10,821 | $ 12,110 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 18,868 | 18,540 | 18,540 |
Less accumulated amortization | 9,977 | 9,102 | 8,235 |
Total | 8,891 | 9,438 | 10,305 |
Noncompete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 3,784 | 4,039 | 4,039 |
Less accumulated amortization | 3,283 | 3,473 | 3,239 |
Total | 501 | 566 | 800 |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 1,796 | 2,479 | 2,479 |
Less accumulated amortization | 1,044 | 1,662 | 1,474 |
Total | $ 752 | $ 817 | $ 1,005 |
Goodwill and other intangible_5
Goodwill and other intangible assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 526 | $ 653 | $ 1,100 | $ 1,300 |
Goodwill and other intangible_6
Goodwill and other intangible assets - Schedule of Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2024 | $ 1,192 |
2025 | 1,964 |
2026 | 1,784 |
2027 | 1,761 |
2028 | 1,717 |
Thereafter | $ 1,726 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |||||
Investments used to satisfy nonqualified benefit plans obligations | $ 27,300 | $ 19,100 | $ 27,300 | $ 19,100 | $ 24,900 |
Net unrealized gain (loss) on investments used to satisfy obligations under nonqualified benefit plans | $ 392 | $ 197 | $ 1,600 | $ 1,100 |
Fair value measurements - Asset
Fair value measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Concentration risks, percentage [Abstract] | |||
Percentage in fixed-income and other investments | 36% | 40% | 47% |
Percentage investment in cash and cash equivalents | 15% | 18% | 20% |
Percentage investment in common stock of large-cap companies | 23% | 19% | 15% |
Percentage investment in common stock of mid-cap companies | 9% | 8% | 8% |
Percentage investment in target date investments | 9% | 8% | 4% |
Percentage investment in real estate investments | 1% | ||
Percentage investment in high yield investments | 1% | ||
Percentage investment in common stock of small-cap companies | 5% | 6% | 6% |
Percentage investment in international investments | 1% | 1% | |
Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Money market funds | $ 3,982 | $ 3,241 | $ 7,529 |
Insurance contracts | 27,289 | 24,896 | 19,141 |
Total assets measured at fair value | 31,271 | 28,137 | 26,670 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Money market funds | 0 | 0 | 0 |
Insurance contracts | 0 | 0 | 0 |
Total assets measured at fair value | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Money market funds | 3,982 | 3,241 | 7,529 |
Insurance contracts | 27,289 | 24,896 | 19,141 |
Total assets measured at fair value | 31,271 | 28,137 | 26,670 |
Significant Unobservable Inputs (Level 3) | Fair value, measurements, recurring | |||
Fair value measurements [Line Items] | |||
Money market funds | 0 | 0 | 0 |
Insurance contracts | 0 | 0 | 0 |
Total assets measured at fair value | $ 0 | $ 0 | $ 0 |
Fair value measurements - Fair
Fair value measurements - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Carrying amount | |||
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt, fair value | $ 693,483 | $ 696,985 | $ 855,000 |
Fair value | |||
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt, fair value | $ 712,852 | $ 725,086 | $ 862,420 |
Debt - Long-Term Debt Outstandi
Debt - Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Long-term debt outstanding [Line Items] | |||
Less unamortized debt issuance costs | $ 13,945 | $ 15,326 | $ 16,382 |
Total long-term debt | 679,538 | 681,659 | 839,129 |
Less current maturities | 7,072 | 7,082 | 7,082 |
Net long-term debt | $ 672,466 | 674,577 | 832,047 |
Term loan agreement due on May 31, 2028 | |||
Long-term debt outstanding [Line Items] | |||
Weighted Average Interest Rate at June 30, 2024 | 7.20% | ||
Long-term debt, gross | $ 268,125 | 271,562 | 275,000 |
Revolving credit agreement | |||
Long-term debt outstanding [Line Items] | |||
Weighted Average Interest Rate at June 30, 2024 | 0% | ||
Long-term debt, gross | $ 0 | 0 | 155,000 |
Senior notes due on May 1, 2031 | |||
Long-term debt outstanding [Line Items] | |||
Weighted Average Interest Rate at June 30, 2024 | 7.75% | ||
Long-term debt, gross | $ 425,000 | 425,000 | 425,000 |
Other notes due on January 1, 2061 | |||
Long-term debt outstanding [Line Items] | |||
Weighted Average Interest Rate at June 30, 2024 | 0% | ||
Long-term debt, gross | $ 358 | $ 423 | $ 511 |
Debt - Schedule of Debt Maturit
Debt - Schedule of Debt Maturities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2024 | $ 3,634 |
2025 | 10,473 |
2026 | 13,750 |
2027 | 17,188 |
2028 | 223,438 |
Thereafter | $ 425,000 |
Cash flow information (Details)
Cash flow information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid, net | $ 27,993 | $ 24,802 |
Income taxes paid, net | 1,662 | 558 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 10,844 | 7,552 |
Property, plant and equipment additions in accounts payable | 5,098 | 3,359 |
Equity contribution from Centennial related to the Separation | 0 | 64,724 |
Equity contribution to MDU Resources for asset/liability transfers related to the Separation | 0 | (1,548) |
MDU Resources' stock issued prior to spin in connection with a business combination | $ 0 | $ 383 |
Business segment data - Narrati
Business segment data - Narrative (Details) | Jun. 30, 2024 state |
Segment Reporting [Abstract] | |
Number of states in which entity operates | 14 |
Business segment data - Informa
Business segment data - Information on Segment Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 806,906 | $ 785,189 | $ 1,136,496 | $ 1,093,089 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 806,667 | 783,664 | 1,136,111 | 1,091,720 |
EBITDA: | 167,225 | 136,831 | 159,366 | 127,347 |
Operating Segments | Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 131,827 | 125,079 | 210,214 | 190,722 |
EBITDA: | 17,789 | 17,457 | 17,046 | 17,605 |
Operating Segments | Northwest | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 200,225 | 178,734 | 319,377 | 294,654 |
EBITDA: | 50,762 | 38,871 | 70,916 | 52,868 |
Operating Segments | Mountain | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 193,769 | 175,754 | 253,595 | 236,372 |
EBITDA: | 43,119 | 30,323 | 37,054 | 26,570 |
Operating Segments | Central | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 214,603 | 231,034 | 275,565 | 288,654 |
EBITDA: | 36,188 | 28,399 | 17,466 | 11,500 |
Operating Segments | Energy Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 66,243 | 73,063 | 77,360 | 81,318 |
EBITDA: | 19,367 | 21,781 | 16,884 | 18,804 |
Intersegment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (165,081) | (167,663) | (211,633) | (207,248) |
Intersegment eliminations | Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (22,013) | (22,393) | (35,621) | (33,197) |
Intersegment eliminations | Northwest | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (33,494) | (35,322) | (48,402) | (48,254) |
Intersegment eliminations | Mountain | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (36,778) | (34,796) | (40,740) | (40,710) |
Intersegment eliminations | Central | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (55,077) | (61,630) | (61,173) | (68,761) |
Intersegment eliminations | Energy Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (13,447) | (13,706) | (16,428) | (15,928) |
Intersegment eliminations | Total reportable segment intersegment operating revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (160,809) | $ (167,847) | $ (202,364) | $ (206,850) |
Business segment data - Operati
Business segment data - Operating Revenues Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 806,906 | $ 785,189 | $ 1,136,496 | $ 1,093,089 |
Intersegment operating revenues | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | (165,081) | (167,663) | (211,633) | (207,248) |
Corporate, Non-Segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 4,511 | 1,341 | 9,654 | 1,767 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 806,667 | 783,664 | 1,136,111 | 1,091,720 |
Operating Segments | Total reportable segment operating revenues | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 967,476 | $ 951,511 | $ 1,338,475 | $ 1,298,570 |
Business segment data - EBITDA
Business segment data - EBITDA Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment, Reconciliation of Other Items from Segments to Consolidated [Line Items] | ||||
Total consolidated net income before income taxes | $ 104,114 | $ 76,855 | $ 40,160 | $ 23,623 |
Depreciation, depletion and amortization | 34,512 | 31,130 | 66,724 | 60,760 |
Interest expense, net | 12,809 | 17,130 | 23,955 | 26,625 |
Corporate, Non-Segment | ||||
Segment, Reconciliation of Other Items from Segments to Consolidated [Line Items] | ||||
EBITDA | (15,790) | (11,716) | (28,527) | (16,339) |
Operating Segments | ||||
Segment, Reconciliation of Other Items from Segments to Consolidated [Line Items] | ||||
EBITDA | $ 167,225 | $ 136,831 | $ 159,366 | $ 127,347 |
Commitments and contingencies (
Commitments and contingencies (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Loss Contingencies [Line Items] | |||
Potential liabilities related to litigation and environmental matters | $ 3,200,000 | $ 873,000 | $ 970,000 |
Insurance receivables | 0 | $ 42,000 | $ 325,000 |
Guarantor obligations, maximum exposure, undiscounted | 11,500,000 | ||
Amount outstanding under guarantees that is reflected on balance sheet | 0 | ||
Letters of credit set to expire current year | 335,000 | ||
Letters of credit set to expire in next fiscal year | 20,500,000 | ||
Letters of credit set to expire, year three | 0 | ||
Letters of credit set to expire, year four | 104,000 | ||
Outstanding letters of credit | $ 0 | ||
Surety bond expiration period | 12 months | ||
Amount of surety bonds outstanding | $ 894,200,000 | ||
Letter of Credit | |||
Loss Contingencies [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 20,900,000 |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses | $ 59,474 | $ 59,450 | $ 119,695 | $ 108,108 |
Other income | 1,304 | 2,478 | 5,054 | 3,304 |
Related Party | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses | 413 | 599 | 1,200 | 599 |
Other income | $ 62 | $ 277 | $ 138 | $ 277 |
Transition services, period | 1 year |