Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PSN | |
Entity Registrant Name | Parsons Corporation | |
Entity Central Index Key | 0000275880 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 103,730,134 | |
Entity File Number | 001-07782 | |
Entity Tax Identification Number | 95-3232481 | |
Entity Address, Address Line One | 5875 Trinity Parkway #300 | |
Entity Address, City or Town | Centreville | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 20120 | |
City Area Code | 703 | |
Local Phone Number | 988-8500 | |
Title of 12(b) Security | Common Stock, $1 par value | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents (including $28,477 and $78,514 Cash of consolidated joint ventures) | $ 285,622 | $ 342,608 |
Restricted cash and investments | 1,140 | 1,275 |
Accounts receivable, net (including $166,410 and $190,643 Accounts receivable of consolidated joint ventures, net) | 646,117 | 598,311 |
Contract assets (including $8,647 and $23,498 Contract assets of consolidated joint ventures) | 600,109 | 579,216 |
Prepaid expenses and other current assets (including $10,694 and $18,783 Prepaid expenses and other current assets of consolidated joint ventures) | 107,978 | 110,941 |
Total current assets | 1,640,966 | 1,632,351 |
Property and equipment, net (including $1,707 and $1,721 Property and equipment of consolidated joint ventures, net) | 97,922 | 104,196 |
Right of use assets, operating leases | 171,907 | 182,672 |
Goodwill | 1,412,834 | 1,412,690 |
Investments in and advances to unconsolidated joint ventures | 114,234 | 110,688 |
Intangible assets, net | 188,731 | 207,821 |
Deferred tax assets | 137,015 | 134,393 |
Other noncurrent assets | 45,232 | 46,129 |
Total assets | 3,808,841 | 3,830,940 |
Current liabilities: | ||
Accounts payable (including $57,700 and $78,558 Accounts payable of consolidated joint ventures) | 157,080 | 196,286 |
Accrued expenses and other current liabilities (including $78,453 and $82,746 Accrued expenses and other current liabilities of consolidated joint ventures) | 609,095 | 599,089 |
Contract liabilities (including $14,637 and $14,333 Contract liabilities of consolidated joint ventures) | 172,932 | 171,671 |
Short-term lease liabilities, operating leases | 57,197 | 55,902 |
Income taxes payable | 12,551 | 7,836 |
Total current liabilities | 1,008,855 | 1,030,784 |
Long-term employee incentives | 15,000 | 15,997 |
Long-term debt | 592,450 | 591,922 |
Long-term lease liabilities, operating leases | 135,276 | 148,893 |
Deferred tax liabilities | 11,793 | 11,400 |
Other long-term liabilities | 94,842 | 94,832 |
Total liabilities | 1,858,216 | 1,893,828 |
Contingencies (Note 12) | ||
Shareholders' equity: | ||
Common stock, $1 par value; authorized 1,000,000,000 shares; 146,347,283 and 146,276,880 shares issued; 34,942,580 and 33,331,494 public shares outstanding; 68,787,554 and 70,328,237 ESOP shares outstanding | 146,348 | 146,277 |
Treasury stock, 42,617,149 shares at cost | (867,391) | (867,391) |
Additional paid-in capital | 2,678,761 | 2,684,979 |
Accumulated deficit | (32,858) | (53,529) |
Accumulated other comprehensive loss | (6,673) | (9,568) |
Total Parsons Corporation shareholders' equity | 1,918,187 | 1,900,768 |
Noncontrolling interests | 32,438 | 36,344 |
Total shareholders' equity | 1,950,625 | 1,937,112 |
Total liabilities and shareholders' equity | $ 3,808,841 | $ 3,830,940 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents | $ 285,622 | $ 342,608 |
Accounts receivable, net | 646,117 | 598,311 |
Contract assets | 600,109 | 579,216 |
Prepaid expenses and other current assets | 107,978 | 110,941 |
Property and equipment, net | 97,922 | 104,196 |
Accounts payable | 157,080 | 196,286 |
Accrued expenses and other current liabilities | 609,095 | 599,089 |
Contract liabilities | $ 172,932 | $ 171,671 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares, issued | 146,347,283 | 146,276,880 |
Common stock, shares, outstanding | 34,942,580 | 33,331,494 |
Treasury stock, shares | 42,617,149 | 42,617,149 |
ESOP | ||
Common stock, shares, outstanding | 68,787,554 | 70,328,237 |
Consolidated Joint Ventures | ||
Cash and cash equivalents | $ 28,477 | $ 78,514 |
Accounts receivable, net | 166,410 | 190,643 |
Contract assets | 8,647 | 23,498 |
Prepaid expenses and other current assets | 10,694 | 18,783 |
Property and equipment, net | 1,707 | 1,721 |
Accounts payable | 57,700 | 78,558 |
Accrued expenses and other current liabilities | 78,453 | 82,746 |
Contract liabilities | $ 14,637 | $ 14,333 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 949,069 | $ 874,697 |
Direct cost of contracts | 733,900 | 669,082 |
Equity in earnings of unconsolidated joint ventures | 5,598 | 7,530 |
Selling, general and administrative expenses | 185,077 | 187,522 |
Operating income | 35,690 | 25,623 |
Interest income | 65 | 98 |
Interest expense | (3,938) | (4,541) |
Other income (expense), net | 145 | (1,791) |
Total other income (expense) | (3,728) | (6,234) |
Income before income tax expense | 31,962 | 19,389 |
Income tax expense | (8,119) | (5,375) |
Net income including noncontrolling interests | 23,843 | 14,014 |
Net income attributable to noncontrolling interests | (3,176) | (4,975) |
Net income attributable to Parsons Corporation | $ 20,667 | $ 9,039 |
Earnings per share: | ||
Basic | $ 0.20 | $ 0.09 |
Diluted | $ 0.19 | $ 0.09 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income including noncontrolling interests | $ 23,843 | $ 14,014 |
Other comprehensive income, net of tax | ||
Foreign currency translation adjustment, net of tax | 2,874 | 4,914 |
Pension adjustments, net of tax | 22 | 19 |
Comprehensive income including noncontrolling interests, net of tax | 26,739 | 18,947 |
Comprehensive income attributable to noncontrolling interests, net of tax | (3,177) | (4,980) |
Comprehensive income attributable to Parsons Corporation, net of tax | $ 23,562 | $ 13,967 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $ 23,843 | $ 14,014 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Depreciation and amortization | 30,509 | 34,673 |
Amortization of debt issue costs | 649 | 665 |
(Gain) loss on disposal of property and equipment | (39) | 267 |
Provision for doubtful accounts | (3) | 0 |
Deferred taxes | (2,566) | 403 |
Foreign currency transaction gains and losses | 882 | 2,220 |
Equity in earnings of unconsolidated joint ventures | (5,598) | (7,530) |
Return on investments in unconsolidated joint ventures | 11,874 | 13,180 |
Stock-based compensation | 3,898 | 7,206 |
Contributions of treasury stock | 13,054 | 13,153 |
Changes in assets and liabilities, net of acquisitions and newly consolidated joint ventures: | ||
Accounts receivable | (46,690) | 2,597 |
Contract assets | (21,212) | (31,711) |
Prepaid expenses and other assets | 4,496 | (5,386) |
Accounts payable | (39,342) | (6,658) |
Accrued expenses and other current liabilities | (4,134) | (68,928) |
Contract liabilities | 945 | (16,086) |
Income taxes | 4,706 | 1,268 |
Other long-term liabilities | (986) | (19,312) |
Net cash used in operating activities | (25,714) | (65,965) |
Cash flows from investing activities: | ||
Capital expenditures | (4,473) | (4,449) |
Proceeds from sale of property and equipment | 112 | 164 |
Payments for acquisitions, net of cash acquired | 0 | 1,064 |
Investments in unconsolidated joint ventures | (9,713) | (22,240) |
Return of investments in unconsolidated joint ventures | 644 | 116 |
Proceeds from sales of investments in unconsolidated joint ventures | 0 | 14,300 |
Net cash used in investing activities | (13,430) | (11,045) |
Cash flows from financing activities: | ||
Contributions by noncontrolling interests | 1,226 | 7 |
Distributions to noncontrolling interests | (8,309) | (8,989) |
Repurchases of common stock | (5,548) | 0 |
Taxes paid on vested stock | (5,771) | (2,242) |
Net cash used in financing activities | (18,402) | (11,224) |
Effect of exchange rate changes | 425 | 430 |
Net decrease in cash, cash equivalents, and restricted cash | (57,121) | (87,804) |
Cash, cash equivalents and restricted cash: | ||
Beginning of year | 343,883 | 487,215 |
End of period | $ 286,762 | $ 399,411 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity (Unaudited) - USD ($) $ in Thousands | Total | Revision of Prior Period, Accounting Standards Update, Adjustment | Common Stock | Treasury Stock | Additional Paid-in Capital | Additional Paid-in CapitalRevision of Prior Period, Accounting Standards Update, Adjustment | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Revision of Prior Period, Accounting Standards Update, Adjustment | Accumulated Other Comprehensive Income (Loss) | Total Parsons Equity | Total Parsons EquityRevision of Prior Period, Accounting Standards Update, Adjustment | Noncontrolling Interest |
Beginning balance at Dec. 31, 2020 | $ 1,861,417 | $ 146,609 | $ (899,328) | $ 2,700,925 | $ (120,569) | $ (13,865) | $ 1,813,772 | $ 47,645 | ||||
Beginning balance (ASU 2020-06) at Dec. 31, 2020 | $ (37,220) | $ (40,002) | $ 2,782 | $ (37,220) | ||||||||
Comprehensive income | ||||||||||||
Net income | 14,014 | 9,039 | 9,039 | 4,975 | ||||||||
Foreign currency translation gain (loss), net | 4,914 | 4,909 | 4,909 | 5 | ||||||||
Pension adjustments, net | 19 | 19 | 19 | |||||||||
Contributions | 7 | 7 | ||||||||||
Distributions | (8,989) | (8,989) | ||||||||||
Issuance of equity securities, net of retirements | (926) | 45 | (999) | 28 | (926) | |||||||
Stock-based compensation | 7,206 | 7,206 | 7,206 | |||||||||
Ending Balance at Mar. 31, 2021 | 1,840,442 | 146,654 | (899,328) | 2,667,130 | (108,720) | (8,937) | 1,796,799 | 43,643 | ||||
Beginning balance at Dec. 31, 2021 | 1,937,112 | 146,277 | (867,391) | 2,684,979 | (53,529) | (9,568) | 1,900,768 | 36,344 | ||||
Comprehensive income | ||||||||||||
Net income | 23,843 | 20,667 | 20,667 | 3,176 | ||||||||
Foreign currency translation gain (loss), net | 2,874 | 2,873 | 2,873 | 1 | ||||||||
Pension adjustments, net | 22 | 22 | 22 | |||||||||
Contributions | 1,226 | 1,226 | ||||||||||
Distributions | (8,309) | (8,309) | ||||||||||
Issuance of equity securities, net of retirements | (4,493) | 222 | (4,719) | 4 | (4,493) | |||||||
Repurchases of common stock | (5,548) | (151) | (5,397) | (5,548) | ||||||||
Stock-based compensation | 3,898 | 3,898 | 3,898 | |||||||||
Ending Balance at Mar. 31, 2022 | $ 1,950,625 | $ 146,348 | $ (867,391) | $ 2,678,761 | $ (32,858) | $ (6,673) | $ 1,918,187 | $ 32,438 |
Description of Operations
Description of Operations | 3 Months Ended |
Mar. 31, 2022 | |
Description Of Operations Disclosure [Abstract] | |
Description of Operations | 1. Description of Operations Organization Parsons Corporation, a Delaware corporation, and its subsidiaries (collectively, the “Company”) provide sophisticated design, engineering and technical services, and smart and agile software to the United States federal government and Critical Infrastructure customers worldwide. The Company performs work in various foreign countries through local subsidiaries, joint ventures and foreign offices maintained to carry out specific projects. |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | 2 . The accompanying unaudited consolidated financial statements and related notes of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and pursuant to the interim period reporting requirements of Form 10-Q. They do not include all of the information and footnotes required by GAAP for complete financial statements and, therefore, should be read in conjunction with our consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, the consolidated financial statements reflect all normal recurring adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The results of operations and cash flows for any interim period are not necessarily indicative of results for the full year or for future years. This Quarterly Report on Form 10-Q includes the accounts of Parsons Corporation and its subsidiaries and affiliates which it controls. Interests in joint ventures that are controlled by the Company, or for which the Company is otherwise deemed to be the primary beneficiary, are consolidated. For joint ventures in which the Company does not have a controlling interest, but exerts a significant influence, the Company applies the equity method of accounting (see “Note 14 – Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. The Company’s most significant estimates and judgments involve revenue recognition with respect to the determination of the costs to complete contracts and transaction price; determination of self-insurance reserves; useful lives of property and equipment and intangible assets; calculation of allowance for doubtful accounts; valuation of deferred income tax assets and uncertain tax positions, among others. Please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” and “Note 2—Summary of Significant Accounting Polices” in the notes to our consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2021, for a discussion of the significant estimates and assumptions affecting our consolidated financial statements. Estimates of costs to complete contracts are continually evaluated as work progresses and are revised when necessary. When a change in estimate is determined to have an impact on contract profit, the Company records a positive or negative adjustment to the consolidated statement of income. Stock Repurchase Plan During the third quarter of 2021, the Company’s Board of Directors authorized the Company to acquire a number of shares of Common Stock having an aggregate market value of not greater than $100,000,000 from time to time. Repurchased shares of common stock are retired and included in “Repurchases of common stock” in cash flows from financing activities in the Consolidated Statements of Cash Flows. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | 3 . In the first quarter of 2022, the Company early adopted ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. The new guidance requires that the approach of ASC 606, Revenue from Contracts with Customers, should be used to measure an acquired revenue contract in a business combination. This guidance is to be applied (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The early adoption of ASU 2021-08 did not have a material impact on the consolidated financial statements. In the first quarter of 2021, the Company early adopted Accounting Standards Update (“ASU”) ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06)”. The update simplifies the accounting for convertible debt instruments and convertible preferred stock by reducing the number of accounting models and limiting the number of embedded conversion features separately recognized from the primary contract. The guidance also includes targeted improvements to the disclosures for convertible instruments and earnings per share. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted ASU 2020-06 in the first quarter of 2021 using the modified retrospective method which resulted in a reduction in non-cash interest expense and reclassification of the equity portion of the Convertible Senior Notes to “Long-term debt” on the consolidated balance sheet. In the first quarter of 2021, the Company adopted ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”)”. ASU 2019-12 was issued as a means to reduce the complexity of accounting for income taxes. The guidance is to be applied using a prospective method, excluding amendments related to franchise taxes, which should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The adoption of ASU 2019-12 did not have a material impact on the consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | 4. BlackHorse Solutions, Inc. On July 6, 2021, the Company acquired a 100% ownership interest in BlackHorse Solutions, Inc (“BlackHorse”), a privately-owned company, for $205.0 million in cash. BlackHorse expands Parsons’ capabilities and products in next-generation military, intelligence, and space operations, specifically in cyber electronic warfare and information dominance. The acquisition was entirely funded by cash on-hand. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed based on the purchase price allocation as of the date of acquisition (in thousands): Amount Cash and cash equivalents $ 15,428 Accounts receivable 3,351 Contract assets 5,979 Prepaid expenses and other current assets 937 Property and equipment 2,239 Right of use assets, operating leases 6,157 Goodwill 143,086 Intangible assets 65,000 Accounts payable (2,326 ) Accrued expenses and other current liabilities (17,190 ) Contract liabilities (320 ) Short-term lease liabilities, operating leases (1,011 ) Long-term lease liabilities, operating leases (5,146 ) Deferred tax liabilities (10,916 ) Other long-term liabilities (235 ) Net assets acquired $ 205,033 Of the total purchase price, the following values were assigned to intangible assets (in thousands, except for years): Gross Carrying Amount Amortization Period (in years) Customer relationships $ 39,000 16 Backlog 23,000 3 Trade name 1,000 2 Developed technologies 1,000 3 Non-compete agreements 1,000 3 Amortization expense of The amount of revenue generated by BlackHorse and included within consolidated revenues is $18.4 million for the three months ended March 31, 2022. Supplemental Pro Forma Information (Unaudited) Supplemental information of unaudited pro forma operating results assuming the BlackHorse acquisition had been consummated as of the beginning of fiscal year 2020 (in thousands) is as follows: Three Months Ended March 31, 2022 March 31, 2021 Pro forma Revenue $ 949,069 $ 891,402 Pro forma Net Income including noncontrolling interests 25,882 13,508 Echo Ridge LLC On July 30, 2021, the Company acquired a 100% ownership interest in Echo Ridge LLC (“Echo Ridge”), a privately-owned company, for $9.0 million in cash. Echo Ridge adds position, navigation, and timing devices; modeling, simulation, test, and measurement tools; and deployable software defined radio products and signal processing services to Parsons’ space portfolio. The acquisition was entirely funded by cash on-hand. The Company allocated the purchase price to the appropriate classes of tangible assets and liabilities and assigned the excess of $7.2 million to goodwill. The entire value of goodwill was assigned to |
Contracts with Customers
Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Contracts with Customers | 5 . Contracts with Customers Disaggregation of Revenue The Company’s contracts contain both fixed-price and cost reimbursable components. Contract types are based on the component that represents the majority of the contract. The following table presents revenue disaggregated by contract type (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Fixed-Price $ 240,574 $ 229,942 Time-and-Materials $ 263,315 239,665 Cost-Plus $ 445,180 405,090 Total $ 949,069 $ 874,697 See “Note 18 – Segments Information” for the Company’s revenues by business lines. Contract Assets a nd Contract Liabilities Contract assets and contract liabilities balances at March 31, 2022 and December 31, 2021 were as follows (in thousands): March 31, 2022 December 31, 2021 Contract assets $ 600,109 $ 579,216 Contract liabilities 172,932 171,671 Net contract assets (liabilities) (1) $ 427,177 $ 407,545 (1) Total contract retentions included in net contract assets (liabilities) were $80.5 million During the three months ended March 31, 2022 and March 31, 2021, the Company recognized revenue of $63.9 million and $69.1 million, respectively, March 31, 2022 December 31, 2021 Acquired contract assets $ - $ 5,979 Acquired contract liabilities - 320 There was no significant impairment of contract assets recognized during the three months ended March 31, 2022 and March 31, 2021. There were no revisions in estimates, such as changes in estimated claims or incentives, related to performance obligations partially satisfied in previous periods that individually had an impact of $5 million or more on revenue during the three months ended March 31, 2022 and March 31, 2021. Accounts Receivable, net Accounts receivable, net consisted of the following as of March 31, 2022 and December 31, 2021 (in thousands): 2022 2021 Billed $ 443,818 $ 434,776 Unbilled 206,251 167,490 Total accounts receivable, gross 650,069 602,266 Allowance for doubtful accounts (3,952 ) (3,955 ) Total accounts receivable, net $ 646,117 $ 598,311 Billed accounts receivable represents amounts billed to clients that have not been collected. Unbilled accounts receivable represents amounts where the Company has a present contractual right to bill but an invoice has not been issued to the customer at the period-end date. The allowance for doubtful accounts was determined based on consideration of trends in actual and forecasted credit quality of clients, including delinquency and payment history, type of client, such as a government agency or commercial sector client, and general economic conditions and particular industry conditions that may affect a client’s ability to pay. Transaction Price Allocated to the Remaining Unsatisfied Performance Obligations The Company’s remaining unsatisfied performance obligations (“RUPO”) as of March 31, 2022 represent a measure of the total dollar value of work to be performed on contracts awarded and in-progress. The Company had $5.5 billion in RUPO as of March 31, 2022. RUPO will increase with awards of new contracts and decrease as the Company performs work and recognizes revenue on existing contracts. Projects are included within RUPO at such time the project is awarded and agreement on contract terms has been reached. The difference between RUPO and backlog relates to unexercised option years that are included within backlog and the value of Indefinite Delivery/Indefinite Quantity (“IDIQ”) contracts included in backlog for which delivery orders have not been issued. RUPO is comprised of: (a) original transaction price, (b) change orders for which written confirmations from our customers have been received, (c) pending change orders for which the Company expects to receive confirmations in the ordinary course of business, and (d) claim amounts that the Company has made against customers for which it has determined that it has a legal basis under existing contractual arrangements and a significant reversal of revenue is not probable, less revenue recognized to-date. The Company expects to satisfy its RUPO as of March 31, 2022 over the following periods (in thousands): Period RUPO Will Be Satisfied Within One Year Within One to Two Years Thereafter Federal Solutions $ 1,291,914 $ 748,839 $ 295,965 Critical Infrastructure 1,543,717 837,968 824,811 Total $ 2,835,631 $ 1,586,807 $ 1,120,776 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | 6. The Company has operating and finance leases for corporate and project office spaces, vehicles, heavy machinery and office equipment. Our leases have remaining lease terms of one year to 8 years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases after the third year. The components of lease costs for the three months ended March 31, 2022 and March 31, 2021 are as follows (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Operating lease cost $ 16,176 $ 16,361 Short-term lease cost 3,480 2,032 Amortization of right-of-use assets 548 474 Interest on lease liabilities 21 29 Sublease income (1,035 ) (776 ) Total lease cost $ 19,190 $ 18,120 Supplemental cash flow information related to leases for the three months ended March 31, 2022 and March 31, 2021 is as follows (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Operating cash flows for operating leases $ 17,506 $ 16,627 Operating cash flows for finance leases 21 30 Financing cash flows from finance leases 511 480 Right-of-use assets obtained in exchange for new operating lease liabilities 2,304 4,865 Right-of-use assets obtained in exchange for new finance lease liabilities $ - $ 619 Supplemental balance sheet and other information related to leases as of March 31, 2022 and December 31, 2021 are as follows (in thousands): March 31, 2022 December 31, 2021 Operating Leases: Right-of-use assets $ 171,907 $ 182,672 Lease liabilities: Current $ 57,197 $ 55,902 Long-term 135,276 148,893 Total operating lease liabilities $ 192,473 $ 204,795 Finance Leases: Other noncurrent assets $ 3,842 $ 4,389 Accrued expenses and other current liabilities $ 1,661 $ 1,822 Other long-term liabilities $ 2,073 $ 2,422 Weighted Average Remaining Lease Term: Operating leases 4.1 Years 4.3 years Finance leases 2.7 Years 2.9 years Weighted Average Discount Rate: Operating leases 3.4 % 3.5 % Finance leases 2.1 % 2.1 % As of March 31, 2022, the Company has no operating leases that have not yet commenced. A maturity analysis of the future undiscounted cash flows associated with the Company’s operating and finance lease liabilities as of March 31, 2022 is as follows (in thousands): Operating Leases Finance Leases 2022 (remaining) $ 48,184 $ 1,378 2023 53,184 1,221 2024 41,599 812 2025 30,955 454 2026 17,564 11 Thereafter 14,607 - Total lease payments 206,093 3,876 Less: imputed interest (13,620 ) (142 ) Total present value of lease liabilities $ 192,473 $ 3,734 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 7 . The following table summarizes the changes in the carrying value of goodwill by reporting segment from December 31, 2021 to March 31, 2022 (in thousands): December 31, 2021 Acquisitions Foreign Exchange March 31, 2022 Federal Solutions $ 1,339,117 $ (744 ) $ - $ 1,338,373 Critical Infrastructure 73,573 - 888 74,461 Total $ 1,412,690 $ (744 ) $ 888 $ 1,412,834 The Company performed a qualitative triggering analysis and determined there was no triggering event indicating a potential impairment to the carrying value of its goodwill at March 31, 2022 and concluded there has not been an impairment. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. The gross amount and accumulated amortization of intangible assets with finite useful lives included in “Intangible assets, net” on the consolidated balance sheets are as follows (in thousands except for years): March 31, 2022 December 31, 2021 Weighted Average Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortization Period (in years) Backlog $ 170,455 $ (131,981 ) $ 38,474 $ 169,455 $ (126,637 ) $ 42,818 3 Customer relationships 301,829 (166,221 ) 135,608 301,829 (158,405 ) 143,424 8 Leases 670 (623 ) 47 670 (618 ) 52 5 Developed technology 113,939 (103,342 ) 10,597 113,939 (96,765 ) 17,174 4 Trade name 9,200 (8,575 ) 625 9,200 (8,444 ) 756 1 Non-compete agreements 5,250 (3,739 ) 1,511 5,250 (3,523 ) 1,727 3 In process research and development 1,800 - 1,800 1,800 - 1,800 n/a Other intangibles 275 (206 ) 69 275 (205 ) 70 10 Total intangible assets $ 603,418 $ (414,687 ) $ 188,731 $ 602,418 $ (394,597 ) $ 207,821 The aggregate amortization expense of intangible assets for the three months ended March 31, 2022 and March 31, 2021 was $20.1 million and $24.5 million, respectively. Estimated amortization expense for the remainder of the current fiscal year and in each of the next four years and beyond is as follows (in thousands): March 31, 2022 2022 $ 46,164 2023 50,123 2024 18,892 2025 13,637 2026 10,265 Thereafter 47,850 Total $ 186,931 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 9 . Property and equipment consisted of the following at March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Useful life (years) Buildings and leasehold improvements $ 100,961 $ 99,543 1-15 Furniture and equipment 87,179 86,862 3-10 Computer systems and equipment 159,280 157,633 3-10 Construction equipment 6,806 6,806 5-7 Construction in progress 11,123 12,970 365,349 363,814 Accumulated depreciation (267,427 ) (259,618 ) Property and equipment, net $ 97,922 $ 104,196 Depreciation expense for the three months ended March 31, 2022 and March 31, 2021 was $9.7 million and $9.6 million, respectively. |
Debt and Credit Facilities
Debt and Credit Facilities | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | 1 0 . Debt consisted of the following (in thousands): March 31, 2022 December 31, 2021 Long-Term: Senior notes 200,000 200,000 Convertible senior notes 400,000 400,000 Debt issuance costs (7,550 ) (8,078 ) Total long-term 592,450 591,922 Total Debt $ 592,450 $ 591,922 Revolving Credit Facility In June 2021 five-year at either a eurocurrency rate plus a margin between 1.0% and 1.625% or a base rate (as defined in the Credit Agreement) plus a margin of between 0% and 0.625%. Private Placement On July 1, 2014, the Company finalized a private placement whereby the Company raised an aggregate amount of $250.0 million in debt as follows (in thousands): Tranche Debt Amount Maturity Date Interest Rates Senior Note, Series A $ 50,000 July 15, 2021 4.44 % Senior Note, Series B 100,000 July 15, 2024 4.98 % Senior Note, Series C 60,000 July 15, 2026 5.13 % Senior Note, Series D 40,000 July 15, 2029 5.38 % The Company incurred $1.1 million of debt issuance costs in connection with the private placement. On August 10, 2018, the Company finalized an amended and restated intercreditor agreement related to this private placement to more closely align certain covenants and definitions with the terms under the 2017 amended and restated Credit Agreement and incurred $0.5 million of additional issuance costs. These costs are presented as a direct deduction from the debt on the face of the consolidated balance sheets. Interest expense related to the Senior Notes for the three months ended March 31, 2022 and March 31, 2021 was $2.6 million and $3.2 million, respectively. Using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration, optionality, and risk profile, the Company estimated that the fair value (Level 2) of its Senior Notes at March 31, 2022 approximates $208.4 million. See “Note 16 – Fair Value of Financial Instruments” for the definition of Level 2 of the fair value hierarchy. The Credit Agreement and private placement includes various covenants, including restrictions on indebtedness, liens, acquisitions, investments or dispositions, payment of dividends and maintenance of certain financial ratios and conditions. The Company was in compliance with these covenants at March 31, 2022 and December 31, 2021. The Company also has in place several secondary bank credit lines for issuing letters of credit, principally for foreign contracts, to support performance and completion guarantees. Letters of credit commitments outstanding under these bank lines aggregated $220.6 million and $223.0 million at March 31, 2022 and December 31, 2021, respectively. Convertible Senior Notes In August 2020, the Company issued an aggregate $400.0 million of 0.25% Convertible Senior Notes due 2025, including the exercise of a $50.0 million initial purchasers’ option. The Company received proceeds from the issuance and sale of the Convertible Senior Notes of $389.7 million, net of $10.3 million of transaction fees and other third-party offering expenses. The Convertible Senior Notes accrue interest at a rate of 0.25% per annum, payable semi-annually on February 15 and August 15 of each year beginning on February 15, 2021, and will mature on August 15, 2025, unless earlier repurchased, redeemed or converted. The Convertible Senior Notes are the Company’s senior unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness, to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries Each $1,000 of principal of the Notes will initially be convertible into 22.2913 shares of our common stock, which is equivalent to an initial conversion price of $44.86 per share, subject to adjustment upon the occurrence of specified events. On or after March 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date of the Convertible Senior Notes, holders may convert all or a portion of their Convertible Senior Notes, regardless of the conditions below. Prior to the close of business on the business day immediately preceding March 15, 2025, the Notes will be convertible at the option of the holders thereof only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on December 31, 2021, if the last reported sale price of the Company’s common stock for at least 20 trading days, whether or not consecutive, during a period of 30 consecutive trading days ending on, and including the last trading day of the immediately preceding calendar quarter, is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of Convertible Senior Notes for such trading day was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; • if the Company calls such Convertible Senior Notes for redemption; or • upon the occurrence of specified corporate events described in the Indenture. The Company may redeem all or any portion of the Convertible Senior Notes for cash, at its option, on or after August 21, 2023 and before the 51 st Upon the occurrence of a fundamental change prior to the maturity date of the Convertible Senior Notes, holders of the Convertible Senior Notes may require the Company to repurchase all or a portion of the Convertible Senior Notes for cash at a price equal to 100% of the principal amount of the Convertible Senior Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Upon conversion, the Company may settle the Convertible Senior Notes for cash, shares of the Company’s common stock, or a combination thereof, at the Company’s option. If the Company satisfies its conversion obligation solely in cash or through payment and delivery of a combination of cash and shares of the Company’s common stock, the amount of cash and shares of common stock due upon conversion will be based on a daily conversion value calculated on a proportionate basis for each trading day in a 50-trading day observation period. Under existing GAAP at the time of issuance during 2020, convertible debt instruments that may be settled in cash on conversion were required to be separated into liability and equity components in a manner that reflects the issuer’s non-convertible debt borrowing rate. The carrying amount of the liability component is based on the fair value of a similar instrument that does not contain an equity conversion option. The carrying amount allocated to the equity component, which is recognized as a debt discount, represents the difference between the proceeds from the issuance of the notes and the fair value of the liability component of the notes. Based on this debt to equity ratio, debt issuance costs are then allocated to the liability and equity components in a similar manner. Accordingly, at issuance the Company allocated $336.1 million to the debt liability and $53.6 million to additional paid-in capital. The difference between the principal amount of the Convertible Senior Notes and the liability component, inclusive of issuance costs, represents the debt discount, which the Company amortized to interest expense over the term of the Convertible Senior Notes using an effective interest rate of 3.25%. During the year ended December 31, 2020, the Company recognized interest expense of $4.4 million. As of December 31, 2020, the net carrying value of the Notes was $340.6 million. In the first quarter of 2021, the Company early adopted ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Equity’s Own Equity (Subtopic 815-40)”. The Company used the modified retrospective method which resulted in a reduction in non-cash interest expense and reclassification of equity component of the convertible senior notes of $55.0 million and equity component of the debt issuance costs of $1.4 million to liabilities on the consolidated balance sheet. The Company also adjusted the carrying amount of the convertible senior notes to what it would have been if the Company had applied ASU 2020-06 from the inception of the Notes and recorded the offset of the carrying amount adjustment of $3.7 million in retained earnings on January 1, 2021. The Company recognized interest expense of $0.7 million and $0.7 million for the three months ended March 31, 2022 and March 31, 2021, respectively. Convertible Note Hedge and Warrant Transactions In connection with the sale of the Convertible Senior Notes, the Company purchased a bond hedge designed to mitigate the potential dilution from the conversion of the Convertible Senior Notes. Under the five-year The cost of the convertible note hedge was partially offset by the Company’s sale of warrants to acquire approximately 8.9 million shares of the Company’s common stock. The warrants were initially exercisable at a price of at least $66.46 per share and are subject to customary adjustments upon the occurrence of certain events, such as the payment of dividends. The Company received $13.8 million in cash proceeds from the sales of these warrants. The bond hedge and warrant transactions effectively increased the conversion price associated with the Convertible Senior Notes during the term of these transactions from 35%, or $44.86, to 100%, or $66.46, at their issuance, thereby reducing the dilutive economic effect to shareholders upon actual conversion. The bond hedges and warrants are indexed to, and potentially settled in, shares of the Company’s common stock. The net cost of $41.2 million for the purchase of the bond hedges and sale of the warrants was recorded as a reduction to additional paid-in capital in the consolidated balance sheets. At issuance, the Company recorded a deferred tax liability of $16.2 million related to the Convertible Senior Notes debt discount and the capitalized debt issuance costs. The Company also recorded a deferred tax asset of $16.5 million related to the convertible note hedge transactions and the tax basis of the capitalized debt issuance costs through additional paid-in capital. The deferred tax liability and deferred tax asset were included net in “Deferred tax assets” on the consolidated balance sheets. Upon adoption of ASU 2020-06, the Company reversed the deferred tax liability of $13.9 million that the Company had recorded at issuance related to the Convertible Senior Note debt discount and recorded an additional deferred tax liability of $0.4 million related to the capitalized debt issuance costs. In addition, the Company recorded a $0.9 million adjustment to the deferred tax asset through retained earnings related to the tax effect of book accretion recorded in 2020 and reversed upon adoption. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. The Company’s effective tax rate was 25.4% and 27.7% for the three months ended March 31, 2022 and 2021, respectively. The change in the effective tax rate was due primarily to a decrease of withholding tax and a change in the jurisdictional mix of earnings. state income taxes and an increased expense for uncertain tax positions, partially offset by benefits related to untaxed income attributable to noncontrolling interests and federal research tax credits. As of March 31, 2022, the Company’s deferred tax assets were subject to a valuation allowance of $28.0 million primarily related to foreign net operating loss carryforwards, foreign tax credit carryforwards, and capital losses that the Company has determined are not more-likely-than-not to be realized. The factors used to assess the likelihood of realization include: the past performance of the entities, forecasts of future taxable income, future reversals of existing taxable temporary differences, and available tax planning strategies that could be implemented to realize the deferred tax assets. The ability or failure to achieve the forecasted taxable income in these entities could affect the ultimate realization of deferred tax assets. As of March 31, 2022 and December 31, 2021, the liability for income taxes associated with uncertain tax positions was $22.5 million and $21.2 million, respectively. It is reasonably possible that the Company may realize a decrease in our uncertain tax positions of approximately $0.5 million during the next 12 months as a result of concluding various tax audits and closing tax years. Although the Company believes its reserves for its tax positions are reasonable, the final outcome of tax audits could be materially different, both favorably and unfavorably. It is reasonably possible that certain audits may conclude in the next 12 months and that the unrecognized tax benefits the Company has recorded in relation to these tax years may change compared to the liabilities recorded for these periods. However, it is not currently possible to estimate the amount, if any, of such change. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 1 2 . The Company is subject to certain lawsuits, claims and assessments that arise in the ordinary course of business. Additionally, the Company has been named as a defendant in lawsuits alleging personal injuries as a result of contact with asbestos products at various project sites. Management believes that any significant costs relating to these claims will be reimbursed by applicable insurance and, although there can be no assurance that these matters will be resolved favorably, management believes that the ultimate resolution of any of these claims will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows. A liability is recorded when it is both probable that a loss has been incurred and the amount of loss or range of loss can be reasonably estimated. When using a range of loss estimate, the Company records the liability using the low end of the range. The Company records a corresponding receivable for costs covered under its insurance policies. Management judgment is required to determine the outcome and the estimated amount of a loss related to such matters. Management believes that there are no claims or assessments outstanding which would materially affect the consolidated results of operations or the Company’s financial position. In September 2015, a former Parsons employee filed an action in the United States District Court for the Northern District of Alabama against us as a qui tam relator on behalf of the United States (the “Relator”) alleging violation of the False Claims Act. The United States government did not intervene in this matter as it is allowed to do so under the statute. The Company filed a motion to dismiss the lawsuit on the grounds that the Relator did not meet the applicable statute of limitations. The District Court granted the motion to dismiss. The Relator’s attorney appealed the decision to the United States Court of Appeals of the Eleventh Circuit, which ultimately ruled in favor of the Relator, and the Company petitioned the United States Supreme Court to review the decision. The Supreme Court reviewed the decision and accepted the position of the Relator. The case was thus remanded to the United States District Court for the Northern District of Alabama. The defendants, including Parsons, will file appropriate pleadings opposing the allegations. At this time, the Company is unable to determine the probability of the outcome of the litigation or determine a potential range of loss, if any. Federal government contracts are subject to audits, which are performed for the most part by the Defense Contract Audit Agency (“DCAA”). Audits by the DCAA and other agencies consist of reviews of our overhead rates, operating systems and cost proposals to ensure that we account for such costs in accordance with the Cost Accounting Standards (“CAS”). If the DCAA determines we have not accounted for such costs in accordance with the CAS, the DCAA may disallow these costs. The disallowance of such costs may result in a reduction of revenue and additional liability for the Company. Historically, the Company has not experienced any material disallowed costs as a result of government audits. However, the Company can provide no assurance that the DCAA or other government audits will not result in material disallowances for incurred costs in the future. All audits of costs incurred on work performed through 2013 have been closed, and years thereafter remain open. Although there can be no assurance that these matters will be resolved favorably, management believes that their ultimate resolution will not have a material adverse impact on the Company’s consolidated financial position, results of operations, or cash flows. |
Retirement Benefit Plan
Retirement Benefit Plan | 3 Months Ended |
Mar. 31, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Benefit Plan | 1 3 . The Company’s principal retirement benefit plan is the Parsons Employee Stock Ownership Plan (“ESOP”), a stock bonus plan, established in 1975 to cover eligible employees of the Company and certain affiliated companies. Contributions of treasury stock to the ESOP are made annually in amounts determined by the Company’s board of directors and are held in trust for the sole benefit of the participants. Shares allocated to a participant’s account are fully vested after three years of credited service, or in the event(s) of reaching age 65, death or disability while an active employee of the Company. As of March 31, 2022 and December 31, 2021, total shares of the Company’s common stock outstanding were 103,730,134 and 103,659,731, respectively, of which 68,787,554 A participant’s interest in their ESOP account is redeemable upon certain events, including retirement, death, termination due to permanent disability, a severe financial hardship following termination of employment, certain conflicts of interest following termination of employment, or the exercise of diversification rights. Distributions from the ESOP of participants’ interests are made in the Company’s common stock based on quoted prices of a share of the Company’s common stock on the NYSE. A participant will be able to sell such shares of common stock in the market, subject to any requirements of the federal securities laws. Total ESOP contribution expense was $13.1 million and $13.2 million for the three months ended March 31, 2022 and March 31, 2021 , respectivel y . The expense is recorded in “Direct costs of contracts” and “ Selling , general and administrative expense” in the consolidated statements of income . Th e fiscal 20 2 2 ESOP contribution has not yet been made. The amount is currently includ ed in accrued liabilities. |
Investments in and Advances to
Investments in and Advances to Joint Ventures | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in and Advances to Joint Ventures | 1 4 . The Company participates in joint ventures to bid, negotiate and complete specific projects. The Company is required to consolidate these joint ventures if it holds the majority voting interest or if the Company meets the criteria under the consolidation model, as described below. The Company performs an analysis to determine whether its variable interests give the Company a controlling financial interest in a Variable Interest Entity (“VIE”) for which the Company is the primary beneficiary and should, therefore, be consolidated. Such analysis requires the Company to assess whether it has the power to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company analyzed all of its joint ventures and classified them into two groups: (1) joint ventures that must be consolidated because they are either not VIEs and the Company holds the majority voting interest, or because they are VIEs and the Company is the primary beneficiary; and (2) joint ventures that do not need to be consolidated because they are either not VIEs and the Company holds a minority voting interest, or because they are VIEs and the Company is not the primary beneficiary. Many of the Company’s joint venture agreements provide for capital calls to fund operations, as necessary; however, such funding is infrequent and is not anticipated to be material. Letters of credit outstanding described in “Note 10 – Debt and Credit Facilities” that relate to project ventures are In the table below, aggregated financial information relating to the Company’s joint ventures is provided because their nature, risk and reward characteristics are similar. None of the Company’s current joint ventures that meet the characteristics of a VIE are individually significant to the consolidated financial statements. Consolidated Joint Ventures The following represents financial information for consolidated joint ventures included in the consolidated financial statements (in thousands): March 31, 2022 December 31, 2021 Current assets $ 214,229 $ 246,342 Noncurrent assets 2,338 2,180 Total assets 216,567 248,522 Current liabilities 150,474 175,637 Total liabilities 150,474 175,637 Total joint venture equity $ 66,093 $ 72,885 Three Months Ended March 31, 2022 March 31, 2021 Revenue $ 95,534 $ 96,624 Costs 88,842 86,306 Net income $ 6,692 $ 10,318 Net income attributable to noncontrolling interests $ 3,176 $ 4,975 The assets of the consolidated joint ventures are restricted for use only by the particular joint venture and are not available for the Company’s general operations. Unconsolidated Joint Ventures The Company accounts for its unconsolidated joint ventures using the equity method of accounting. Under this method, the Company recognizes its proportionate share of the net earnings of these joint ventures as “Equity in earnings (loss) of unconsolidated joint ventures” in the consolidated statements of income. The Company’s maximum exposure to loss as a result of its investments in unconsolidated joint ventures is typically limited to the aggregate of the carrying value of the investment and future funding commitments. The following represents the financial information of the Company’s unconsolidated joint ventures as presented in their unaudited financial statements (in thousands): March 31, 2022 December 31, 2021 Current assets $ 1,707,836 $ 1,620,735 Noncurrent assets 539,798 531,261 Total assets 2,247,634 2,151,996 Current liabilities 1,252,393 1,088,985 Noncurrent liabilities 603,929 669,911 Total liabilities 1,856,322 1,758,896 Total joint venture equity $ 391,312 $ 393,100 Investments in and advances to unconsolidated joint ventures $ 114,234 $ 110,688 Three Months Ended March 31, 2022 March 31, 2021 Revenue $ 384,581 $ 236,517 Costs 373,286 210,847 Net income $ 11,295 $ 25,670 Equity in earnings of unconsolidated joint ventures $ 5,598 $ 7,530 The Company received net distributions from its unconsolidated joint ventures for the three months ended March 31, 2022 and March 31, 2021 of $2.8 million and $5.4 million, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. The Company often provides services to unconsolidated joint ventures and revenues include amounts related to recovering costs for these services. Revenues related to services the Company provided to unconsolidated joint ventures for the three months ended March 31, 2022 and March 31, 2021 were $47.3 million and $53.7 million, respectively. March 31, 2022 December 31, 2021 Accounts receivable $ 36,097 $ 30,246 Contract assets 19,819 16,069 Contract liabilities 11,466 10,605 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 1 6 . The authoritative guidance on fair value measurement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an “exit price”). At March 31, 2022 and December 31, 2021, the Company’s financial instruments include cash, cash equivalents, accounts receivable, accounts payable, and other liabilities. The fair values of these financial instruments approximate their carrying values due to their short-term maturities. Investments measured at fair value are based on one or more of the following three valuation techniques: • Market approach —Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities; • Cost approach —Amount that would be required to replace the service capacity of an asset (i.e., replacement cost); and • Income approach —Techniques to convert future amounts to a single present amount based on market expectations (including present value techniques, option-pricing models and lattice models). In addition, the guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities; Level 2 Pricing inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument; and Level 3 Prices or valuations that require inputs that are both significant to the fair value measurements and unobservable. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Refer to Notes to Consolidated Financial Statements included in the Company’s Form 10-K for the year ended December 31, 2021 for a more complete discussion of the various items within the consolidated financial statements measured at fair value and the methods used to determine fair value. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 7 . The following tables reconcile the denominator and numerator used to compute basic earnings per share (“EPS”) to the denominator and numerator used to compute diluted EPS for the three months ended March 31, 2022 and March 31, 2021. Basic EPS is computed using the weighted average number of shares outstanding during the period and income available to shareholders. Diluted EPS is computed similar to basic EPS, except the income available to shareholders is adjusted to add back interest expense, after tax, related to the Convertible Senior Note, and the weighted average number of shares outstanding is adjusted to reflect the dilutive effects of stock-based awards and shares underlying the Convertible Senior Note. Dilutive potential common shares include, when circumstances require, shares the Company could be obligated to issue from its Convertible Senior Notes and warrants (see Note 10 for further discussion) and stock-based awards. Shares to be provided to the Company from its bond hedge purchased concurrently with the issuance of Convertible Senior Notes are anti-dilutive and are not included in its diluted shares. Anti-dilutive stock-based awards excluded from the calculation of earnings per share for the three months ended March 31, 2022 and March 31, 2021 were 13,117 and 145, respectively. The weighted average number of shares used to compute basic and diluted EPS were: Three Months Ended March 31, 2022 March 31, 2021 Basic weighted average number of shares outstanding 103,768,636 102,375,923 Stock-based awards 779,834 573,048 Convertible senior notes 8,916,530 8,916,530 Diluted weighted average number of shares outstanding 113,465,000 111,865,501 The net income available to shareholders to compute basic and diluted EPS were (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Net income attributable to Parsons Corporation 20,667 9,039 Convertible senior notes if-converted method interest adjustment 540 528 Diluted net income attributable to Parsons Corporation 21,207 9,567 Share Repurchases In August 2021, the Company’s Board of Directors authorized a stock repurchase program to repurchase up to $100.0 million of shares of Commons stock. Repurchases under this stock repurchase program commenced on August 12, 2021. Any and all shares of Common Stock purchased by the Company pursuant to the program shall be retired upon their acquisition and shall not become treasury shares but instead shall resume the status of authorized but unissued shares of Common Stock. The table below presents information on this repurchase program: Three Months Ended March 31, 2022 Total shares repurchased 151,436 Total shares retired 151,436 Average price paid per share $ 36.64 As of March 31, 2022, the Company has $72.8 million remaining under the stock repurchase program. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 18. The Company operates in two reportable segments: Federal Solutions and Critical Infrastructure. The Federal Solutions segment provides advanced technical solutions to the U.S. government, delivering timely, cost-effective hardware, software and services for mission-critical projects. The segment provides advanced technologies, supporting national security missions in cybersecurity, missile defense, and military facility modernization, logistics support, hazardous material remediation and engineering services. The Critical Infrastructure segment provides integrated engineering and management services for complex physical and digital infrastructure around the globe. The Critical Infrastructure segment is a technology innovator focused on next generation digital systems and complex structures. Industry leading capabilities in engineering and project management allow the Company to deliver significant value to customers by employing cutting-edge technologies, improving timelines and reducing costs. The Company defines its reportable segments based on the way the chief operating decision maker (“CODM”), its Chairman and Chief Executive Officer, evaluates the performance of each segment and manages the operations of the Company for purposes of allocating resources among the segments. The CODM evaluates segment operating performance using segment Revenue and segment Adjusted EBITDA attributable to Parsons Corporation. The following table summarizes business segment revenue for the periods presented (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Federal Solutions revenue $ 491,629 $ 452,069 Critical Infrastructure revenue 457,440 422,628 Total revenue $ 949,069 $ 874,697 The Company defines Adjusted EBITDA attributable to Parsons Corporation as Adjusted EBITDA excluding Adjusted EBITDA attributable to noncontrolling interests. The Company defines Adjusted EBITDA as net income (loss) attributable to Parsons Corporation, adjusted to include net income (loss) attributable to noncontrolling interests and to exclude interest expense (net of interest income), provision for income taxes, depreciation and amortization and certain other items that are not considered in the evaluation of ongoing operating performance. These other items include net income (loss) attributable to noncontrolling interests, asset impairment charges, equity-based compensation, income and expense recognized on litigation matters, expenses incurred in connection with acquisitions and other non-recurring transaction costs and expenses related to our prior restructuring. The following table reconciles business segment Adjusted EBITDA attributable to Parsons Corporation to Net Income attributable to Parsons Corporation for the periods presented (in thousands): Three Months Ended Adjusted EBITDA attributable to Parsons Corporation March 31, 2022 March 31, 2021 Federal Solutions $ 42,638 $ 31,982 Critical Infrastructure 28,315 31,657 Adjusted EBITDA attributable to Parsons Corporation 70,953 63,639 Adjusted EBITDA attributable to noncontrolling interests 3,295 5,060 Depreciation and amortization (30,509 ) (34,673 ) Interest expense, net (3,873 ) (4,443 ) Income tax expense (8,119 ) (5,375 ) Equity-based compensation expense (3,898 ) (6,980 ) Transaction-related costs (a) (2,398 ) (2,646 ) Restructuring expense (b) (213 ) (77 ) Other (c) (1,395 ) (491 ) Net income including noncontrolling interests 23,843 14,014 Net income attributable to noncontrolling interests 3,176 4,975 Net income attributable to Parsons Corporation $ 20,667 $ 9,039 (a) Reflects costs incurred in connection with acquisitions and other non-recurring transaction costs, primarily fees paid for professional services and employee retention. (b) Reflects costs associated with corporate restructuring initiatives. (c) Includes a combination of gain/loss related to sale of fixed assets, software implementation costs, and other individually insignificant items that are non-recurring in nature. Asset information by segment is not a key measure of performance used by the CODM. The following tables present revenues and property and equipment, net by geographic area (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Revenue North America $ 785,708 $ 716,346 Middle East 158,063 153,643 Rest of World 5,298 4,708 Total Revenue $ 949,069 $ 874,697 The geographic location of revenue is determined by the location of the customer. March 31, 2022 December 31, 2021 Property and Equipment, Net North America $ 94,481 $ 100,674 Middle East 3,441 3,522 Total Property and Equipment, Net $ 97,922 $ 104,196 North America includes revenue in the United States for the three months ended March 31, 2022 and March 31, 2021 of $718.0 million and $652.2 million, respectively. The following table presents revenues by business units (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Revenue Defense and Intelligence $ 346,233 $ 311,102 Engineered Systems 145,396 140,967 Federal Solutions revenues 491,629 452,069 Mobility Solutions 294,786 281,596 Connected Communities 162,654 141,032 Critical Infrastructure revenues 457,440 422,628 Total Revenue $ 949,069 $ 874,697 Effective July 1, 2021, the Company made changes to its Federal Solutions business units by consolidating Space & Geospatial Solutions, Cyber & Intelligence, and Missile Defense & C5ISR into a new Defense and Intelligence business unit. Effective January 1, 2022, the Company made changes to its Critical Infrastructure business units by transferring a portion of legacy Mobility Solutions to the Connected Communities business unit. The prior year information in the table above has been reclassified to conform to the business line changes. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | The accompanying unaudited consolidated financial statements and related notes of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and pursuant to the interim period reporting requirements of Form 10-Q. They do not include all of the information and footnotes required by GAAP for complete financial statements and, therefore, should be read in conjunction with our consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, the consolidated financial statements reflect all normal recurring adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The results of operations and cash flows for any interim period are not necessarily indicative of results for the full year or for future years. This Quarterly Report on Form 10-Q includes the accounts of Parsons Corporation and its subsidiaries and affiliates which it controls. Interests in joint ventures that are controlled by the Company, or for which the Company is otherwise deemed to be the primary beneficiary, are consolidated. For joint ventures in which the Company does not have a controlling interest, but exerts a significant influence, the Company applies the equity method of accounting (see “Note 14 – |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. The Company’s most significant estimates and judgments involve revenue recognition with respect to the determination of the costs to complete contracts and transaction price; determination of self-insurance reserves; useful lives of property and equipment and intangible assets; calculation of allowance for doubtful accounts; valuation of deferred income tax assets and uncertain tax positions, among others. Please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” and “Note 2—Summary of Significant Accounting Polices” in the notes to our consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2021, for a discussion of the significant estimates and assumptions affecting our consolidated financial statements. Estimates of costs to complete contracts are continually evaluated as work progresses and are revised when necessary. When a change in estimate is determined to have an impact on contract profit, the Company records a positive or negative adjustment to the consolidated statement of income. |
Stock Repurchase Plan | Stock Repurchase Plan During the third quarter of 2021, the Company’s Board of Directors authorized the Company to acquire a number of shares of Common Stock having an aggregate market value of not greater than $100,000,000 from time to time. Repurchased shares of common stock are retired and included in “Repurchases of common stock” in cash flows from financing activities in the Consolidated Statements of Cash Flows. |
New Accounting Pronouncements | In the first quarter of 2022, the Company early adopted ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. The new guidance requires that the approach of ASC 606, Revenue from Contracts with Customers, should be used to measure an acquired revenue contract in a business combination. This guidance is to be applied (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The early adoption of ASU 2021-08 did not have a material impact on the consolidated financial statements. In the first quarter of 2021, the Company early adopted Accounting Standards Update (“ASU”) ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06)”. The update simplifies the accounting for convertible debt instruments and convertible preferred stock by reducing the number of accounting models and limiting the number of embedded conversion features separately recognized from the primary contract. The guidance also includes targeted improvements to the disclosures for convertible instruments and earnings per share. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted ASU 2020-06 in the first quarter of 2021 using the modified retrospective method which resulted in a reduction in non-cash interest expense and reclassification of the equity portion of the Convertible Senior Notes to “Long-term debt” on the consolidated balance sheet. In the first quarter of 2021, the Company adopted ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”)”. ASU 2019-12 was issued as a means to reduce the complexity of accounting for income taxes. The guidance is to be applied using a prospective method, excluding amendments related to franchise taxes, which should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The adoption of ASU 2019-12 did not have a material impact on the consolidated financial statements. |
Leases | Leases The Company has operating and finance leases for corporate and project office spaces, vehicles, heavy machinery and office equipment. Our leases have remaining lease terms of one year to 8 years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases after the third year. |
Acquisitions (Tables)
Acquisitions (Tables) - BlackHorse Solutions, Inc. | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed on Preliminary Purchase Price Allocation | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed based on the purchase price allocation as of the date of acquisition (in thousands): Amount Cash and cash equivalents $ 15,428 Accounts receivable 3,351 Contract assets 5,979 Prepaid expenses and other current assets 937 Property and equipment 2,239 Right of use assets, operating leases 6,157 Goodwill 143,086 Intangible assets 65,000 Accounts payable (2,326 ) Accrued expenses and other current liabilities (17,190 ) Contract liabilities (320 ) Short-term lease liabilities, operating leases (1,011 ) Long-term lease liabilities, operating leases (5,146 ) Deferred tax liabilities (10,916 ) Other long-term liabilities (235 ) Net assets acquired $ 205,033 |
Schedule of Intangible Assets Value on Purchase Price | Of the total purchase price, the following values were assigned to intangible assets (in thousands, except for years): Gross Carrying Amount Amortization Period (in years) Customer relationships $ 39,000 16 Backlog 23,000 3 Trade name 1,000 2 Developed technologies 1,000 3 Non-compete agreements 1,000 3 |
Schedule of Supplemental Pro Forma Information | Supplemental information of unaudited pro forma operating results assuming the BlackHorse acquisition had been consummated as of the beginning of fiscal year 2020 (in thousands) is as follows: Three Months Ended March 31, 2022 March 31, 2021 Pro forma Revenue $ 949,069 $ 891,402 Pro forma Net Income including noncontrolling interests 25,882 13,508 |
Contracts with Customers (Table
Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue | The Company’s contracts contain both fixed-price and cost reimbursable components. Contract types are based on the component that represents the majority of the contract. The following table presents revenue disaggregated by contract type (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Fixed-Price $ 240,574 $ 229,942 Time-and-Materials $ 263,315 239,665 Cost-Plus $ 445,180 405,090 Total $ 949,069 $ 874,697 |
Summary of Contract Assets and Contract Liabilities | Contract assets and contract liabilities balances at March 31, 2022 and December 31, 2021 were as follows (in thousands): March 31, 2022 December 31, 2021 Contract assets $ 600,109 $ 579,216 Contract liabilities 172,932 171,671 Net contract assets (liabilities) (1) $ 427,177 $ 407,545 (1) Total contract retentions included in net contract assets (liabilities) were $80.5 million |
Summary of Changes in Contract Assets and Contract Liabilities | Certain changes in contract assets and contract liabilities consisted of the following: March 31, 2022 December 31, 2021 Acquired contract assets $ - $ 5,979 Acquired contract liabilities - 320 |
Summary of Accounts Receivable, Net | Accounts receivable, net consisted of the following as of March 31, 2022 and December 31, 2021 (in thousands): 2022 2021 Billed $ 443,818 $ 434,776 Unbilled 206,251 167,490 Total accounts receivable, gross 650,069 602,266 Allowance for doubtful accounts (3,952 ) (3,955 ) Total accounts receivable, net $ 646,117 $ 598,311 |
Summary of Remaining Unsatisfied Performance Obligations Expect to Satisfy | The Company expects to satisfy its RUPO as of March 31, 2022 over the following periods (in thousands): Period RUPO Will Be Satisfied Within One Year Within One to Two Years Thereafter Federal Solutions $ 1,291,914 $ 748,839 $ 295,965 Critical Infrastructure 1,543,717 837,968 824,811 Total $ 2,835,631 $ 1,586,807 $ 1,120,776 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Summary of Lease Costs | The components of lease costs for the three months ended March 31, 2022 and March 31, 2021 are as follows (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Operating lease cost $ 16,176 $ 16,361 Short-term lease cost 3,480 2,032 Amortization of right-of-use assets 548 474 Interest on lease liabilities 21 29 Sublease income (1,035 ) (776 ) Total lease cost $ 19,190 $ 18,120 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the three months ended March 31, 2022 and March 31, 2021 is as follows (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Operating cash flows for operating leases $ 17,506 $ 16,627 Operating cash flows for finance leases 21 30 Financing cash flows from finance leases 511 480 Right-of-use assets obtained in exchange for new operating lease liabilities 2,304 4,865 Right-of-use assets obtained in exchange for new finance lease liabilities $ - $ 619 |
Schedule of Supplemental Balance Sheet and Other Information Related to Leases | Supplemental balance sheet and other information related to leases as of March 31, 2022 and December 31, 2021 are as follows (in thousands): March 31, 2022 December 31, 2021 Operating Leases: Right-of-use assets $ 171,907 $ 182,672 Lease liabilities: Current $ 57,197 $ 55,902 Long-term 135,276 148,893 Total operating lease liabilities $ 192,473 $ 204,795 Finance Leases: Other noncurrent assets $ 3,842 $ 4,389 Accrued expenses and other current liabilities $ 1,661 $ 1,822 Other long-term liabilities $ 2,073 $ 2,422 Weighted Average Remaining Lease Term: Operating leases 4.1 Years 4.3 years Finance leases 2.7 Years 2.9 years Weighted Average Discount Rate: Operating leases 3.4 % 3.5 % Finance leases 2.1 % 2.1 % |
Schedule of Maturity Analysis of Future Undiscounted Cash Flows | A maturity analysis of the future undiscounted cash flows associated with the Company’s operating and finance lease liabilities as of March 31, 2022 is as follows (in thousands): Operating Leases Finance Leases 2022 (remaining) $ 48,184 $ 1,378 2023 53,184 1,221 2024 41,599 812 2025 30,955 454 2026 17,564 11 Thereafter 14,607 - Total lease payments 206,093 3,876 Less: imputed interest (13,620 ) (142 ) Total present value of lease liabilities $ 192,473 $ 3,734 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Value of Goodwill by Reporting Segment | The following table summarizes the changes in the carrying value of goodwill by reporting segment from December 31, 2021 to March 31, 2022 (in thousands): December 31, 2021 Acquisitions Foreign Exchange March 31, 2022 Federal Solutions $ 1,339,117 $ (744 ) $ - $ 1,338,373 Critical Infrastructure 73,573 - 888 74,461 Total $ 1,412,690 $ (744 ) $ 888 $ 1,412,834 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Amount and Accumulated Amortization of Intangible Assets | The gross amount and accumulated amortization of intangible assets with finite useful lives included in “Intangible assets, net” on the consolidated balance sheets are as follows (in thousands except for years): March 31, 2022 December 31, 2021 Weighted Average Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortization Period (in years) Backlog $ 170,455 $ (131,981 ) $ 38,474 $ 169,455 $ (126,637 ) $ 42,818 3 Customer relationships 301,829 (166,221 ) 135,608 301,829 (158,405 ) 143,424 8 Leases 670 (623 ) 47 670 (618 ) 52 5 Developed technology 113,939 (103,342 ) 10,597 113,939 (96,765 ) 17,174 4 Trade name 9,200 (8,575 ) 625 9,200 (8,444 ) 756 1 Non-compete agreements 5,250 (3,739 ) 1,511 5,250 (3,523 ) 1,727 3 In process research and development 1,800 - 1,800 1,800 - 1,800 n/a Other intangibles 275 (206 ) 69 275 (205 ) 70 10 Total intangible assets $ 603,418 $ (414,687 ) $ 188,731 $ 602,418 $ (394,597 ) $ 207,821 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for the remainder of the current fiscal year and in each of the next four years and beyond is as follows (in thousands): March 31, 2022 2022 $ 46,164 2023 50,123 2024 18,892 2025 13,637 2026 10,265 Thereafter 47,850 Total $ 186,931 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment consisted of the following at March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Useful life (years) Buildings and leasehold improvements $ 100,961 $ 99,543 1-15 Furniture and equipment 87,179 86,862 3-10 Computer systems and equipment 159,280 157,633 3-10 Construction equipment 6,806 6,806 5-7 Construction in progress 11,123 12,970 365,349 363,814 Accumulated depreciation (267,427 ) (259,618 ) Property and equipment, net $ 97,922 $ 104,196 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following (in thousands): March 31, 2022 December 31, 2021 Long-Term: Senior notes 200,000 200,000 Convertible senior notes 400,000 400,000 Debt issuance costs (7,550 ) (8,078 ) Total long-term 592,450 591,922 Total Debt $ 592,450 $ 591,922 |
Schedule of Aggregate Amount of Debt | On July 1, 2014, the Company finalized a private placement whereby the Company raised an aggregate amount of $250.0 million in debt as follows (in thousands): Tranche Debt Amount Maturity Date Interest Rates Senior Note, Series A $ 50,000 July 15, 2021 4.44 % Senior Note, Series B 100,000 July 15, 2024 4.98 % Senior Note, Series C 60,000 July 15, 2026 5.13 % Senior Note, Series D 40,000 July 15, 2029 5.38 % |
Investments in and Advances t_2
Investments in and Advances to Joint Ventures (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of Financial Information of Consolidated Joint Ventures | The following represents financial information for consolidated joint ventures included in the consolidated financial statements (in thousands): March 31, 2022 December 31, 2021 Current assets $ 214,229 $ 246,342 Noncurrent assets 2,338 2,180 Total assets 216,567 248,522 Current liabilities 150,474 175,637 Total liabilities 150,474 175,637 Total joint venture equity $ 66,093 $ 72,885 Three Months Ended March 31, 2022 March 31, 2021 Revenue $ 95,534 $ 96,624 Costs 88,842 86,306 Net income $ 6,692 $ 10,318 Net income attributable to noncontrolling interests $ 3,176 $ 4,975 |
Summary of Financial Information for Unconsolidated Joint Ventures | The following represents the financial information of the Company’s unconsolidated joint ventures as presented in their unaudited financial statements (in thousands): March 31, 2022 December 31, 2021 Current assets $ 1,707,836 $ 1,620,735 Noncurrent assets 539,798 531,261 Total assets 2,247,634 2,151,996 Current liabilities 1,252,393 1,088,985 Noncurrent liabilities 603,929 669,911 Total liabilities 1,856,322 1,758,896 Total joint venture equity $ 391,312 $ 393,100 Investments in and advances to unconsolidated joint ventures $ 114,234 $ 110,688 Three Months Ended March 31, 2022 March 31, 2021 Revenue $ 384,581 $ 236,517 Costs 373,286 210,847 Net income $ 11,295 $ 25,670 Equity in earnings of unconsolidated joint ventures $ 5,598 $ 7,530 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Consolidated Balance Sheet Related to Services Provided to Unconsolidated Joint Ventures | Amounts included in the consolidated balance sheets related to services the Company provided to unconsolidated joint ventures are as follows (in thousands): March 31, 2022 December 31, 2021 Accounts receivable $ 36,097 $ 30,246 Contract assets 19,819 16,069 Contract liabilities 11,466 10,605 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares Used To Compute Basic and Diluted EPS | The weighted average number of shares used to compute basic and diluted EPS were: Three Months Ended March 31, 2022 March 31, 2021 Basic weighted average number of shares outstanding 103,768,636 102,375,923 Stock-based awards 779,834 573,048 Convertible senior notes 8,916,530 8,916,530 Diluted weighted average number of shares outstanding 113,465,000 111,865,501 |
Net Income Available to Shareholders to Compute Basic and Diluted EPS | The net income available to shareholders to compute basic and diluted EPS were (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Net income attributable to Parsons Corporation 20,667 9,039 Convertible senior notes if-converted method interest adjustment 540 528 Diluted net income attributable to Parsons Corporation 21,207 9,567 |
Schedule of Repurchase Program | The table below presents information on this repurchase program: Three Months Ended March 31, 2022 Total shares repurchased 151,436 Total shares retired 151,436 Average price paid per share $ 36.64 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Business Segment Information | The following table summarizes business segment revenue for the periods presented (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Federal Solutions revenue $ 491,629 $ 452,069 Critical Infrastructure revenue 457,440 422,628 Total revenue $ 949,069 $ 874,697 |
Summary of Adjusted EBITDA Business Segment Information | The following table reconciles business segment Adjusted EBITDA attributable to Parsons Corporation to Net Income attributable to Parsons Corporation for the periods presented (in thousands): Three Months Ended Adjusted EBITDA attributable to Parsons Corporation March 31, 2022 March 31, 2021 Federal Solutions $ 42,638 $ 31,982 Critical Infrastructure 28,315 31,657 Adjusted EBITDA attributable to Parsons Corporation 70,953 63,639 Adjusted EBITDA attributable to noncontrolling interests 3,295 5,060 Depreciation and amortization (30,509 ) (34,673 ) Interest expense, net (3,873 ) (4,443 ) Income tax expense (8,119 ) (5,375 ) Equity-based compensation expense (3,898 ) (6,980 ) Transaction-related costs (a) (2,398 ) (2,646 ) Restructuring expense (b) (213 ) (77 ) Other (c) (1,395 ) (491 ) Net income including noncontrolling interests 23,843 14,014 Net income attributable to noncontrolling interests 3,176 4,975 Net income attributable to Parsons Corporation $ 20,667 $ 9,039 (a) Reflects costs incurred in connection with acquisitions and other non-recurring transaction costs, primarily fees paid for professional services and employee retention. (b) Reflects costs associated with corporate restructuring initiatives. (c) Includes a combination of gain/loss related to sale of fixed assets, software implementation costs, and other individually insignificant items that are non-recurring in nature. |
Summary of Revenues and Property and Equipment, Net by Geographic Area | The following tables present revenues and property and equipment, net by geographic area (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Revenue North America $ 785,708 $ 716,346 Middle East 158,063 153,643 Rest of World 5,298 4,708 Total Revenue $ 949,069 $ 874,697 The geographic location of revenue is determined by the location of the customer. March 31, 2022 December 31, 2021 Property and Equipment, Net North America $ 94,481 $ 100,674 Middle East 3,441 3,522 Total Property and Equipment, Net $ 97,922 $ 104,196 |
Summary of Revenues by Business Lines | The following table presents revenues by business units (in thousands): Three Months Ended March 31, 2022 March 31, 2021 Revenue Defense and Intelligence $ 346,233 $ 311,102 Engineered Systems 145,396 140,967 Federal Solutions revenues 491,629 452,069 Mobility Solutions 294,786 281,596 Connected Communities 162,654 141,032 Critical Infrastructure revenues 457,440 422,628 Total Revenue $ 949,069 $ 874,697 |
Basis of Presentation and Pri_3
Basis of Presentation and Principles of Consolidation - Additional Information (Details) | Sep. 30, 2021USD ($) |
Maximum | |
Basis Of Presentation And Principles Of Consolidation Disclosure [Line Items] | |
Number of authorized shares of common stock value | $ 100,000,000 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Details) | Mar. 31, 2022 |
ASU 2020-06 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 |
Change in accounting principle, accounting standards update, early adoption | true |
Change in accounting principle, accounting standards update, immaterial effect | false |
ASU 2021-08 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2022 |
Change in accounting principle, accounting standards update, early adoption | true |
Change in accounting principle, accounting standards update, immaterial effect | true |
ASU 2019-12 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Change in accounting principle, accounting standards update, adopted | true |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | Jul. 30, 2021 | Jul. 06, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||||
Amortization of intangible assets | $ 20,100 | $ 24,500 | |||
Revenues | 949,069 | $ 874,697 | |||
Goodwill | 1,412,834 | $ 1,412,690 | |||
BlackHorse Solutions, Inc. | |||||
Business Acquisition [Line Items] | |||||
Percentage of ownership interest acquired | 100.00% | ||||
Cash paid to acquire | $ 205,000 | ||||
Amortization of intangible assets | 3,600 | ||||
Goodwill deductible for tax purposes | 10,600 | ||||
Revenues | 18,400 | ||||
Goodwill | $ 143,086 | ||||
Echo Ridge LLC | |||||
Business Acquisition [Line Items] | |||||
Percentage of ownership interest acquired | 100.00% | ||||
Cash paid to acquire | $ 9,000 | ||||
Revenues | $ 1,600 | ||||
Goodwill | $ 7,200 |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed on Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Jul. 06, 2021 |
Business Acquisition [Line Items] | |||
Contract assets | $ 600,109 | $ 579,216 | |
Goodwill | 1,412,834 | 1,412,690 | |
Contract liabilities | $ (172,932) | $ (171,671) | |
BlackHorse Solutions, Inc. | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 15,428 | ||
Accounts receivable | 3,351 | ||
Contract assets | 5,979 | ||
Prepaid expenses and other current assets | 937 | ||
Property and equipment | 2,239 | ||
Right of use assets, operating leases | 6,157 | ||
Goodwill | 143,086 | ||
Intangible assets | 65,000 | ||
Accounts payable | (2,326) | ||
Accrued expenses and other current liabilities | (17,190) | ||
Contract liabilities | (320) | ||
Short-term lease liabilities, operating leases | (1,011) | ||
Long-term lease liabilities, operating leases | (5,146) | ||
Deferred tax liabilities | (10,916) | ||
Other long-term liabilities | (235) | ||
Net assets acquired | $ 205,033 |
Acquisitions - Schedule of Inta
Acquisitions - Schedule of Intangible Assets Value on Purchase Price (Details) - USD ($) $ in Thousands | Jul. 06, 2021 | Mar. 31, 2022 |
Customer Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization Period (in years) | 8 years | |
Customer Relationships | BlackHorse Solutions, Inc. | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 39,000 | |
Amortization Period (in years) | 16 years | |
Backlog | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization Period (in years) | 3 years | |
Backlog | BlackHorse Solutions, Inc. | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 23,000 | |
Amortization Period (in years) | 3 years | |
Trade Names | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization Period (in years) | 1 year | |
Trade Names | BlackHorse Solutions, Inc. | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,000 | |
Amortization Period (in years) | 2 years | |
Non compete Agreements | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization Period (in years) | 3 years | |
Non compete Agreements | BlackHorse Solutions, Inc. | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,000 | |
Amortization Period (in years) | 3 years | |
Developed Technologies | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization Period (in years) | 4 years | |
Developed Technologies | BlackHorse Solutions, Inc. | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,000 | |
Amortization Period (in years) | 3 years |
Acquisitions - Schedule of Supp
Acquisitions - Schedule of Supplemental Pro Forma Information (Details) - BlackHorse Solutions, Inc. - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | ||
Pro forma Revenue | $ 949,069 | $ 891,402 |
Pro forma Net Income including noncontrolling interests | $ 25,882 | $ 13,508 |
Contracts with Customers - Summ
Contracts with Customers - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 949,069 | $ 874,697 |
Fixed-Price | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 240,574 | 229,942 |
Time-and-Materials | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 263,315 | 239,665 |
Cost-Plus | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 445,180 | $ 405,090 |
Contracts with Customers - Su_2
Contracts with Customers - Summary of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue From Contract With Customer [Abstract] | ||
Contract assets | $ 600,109 | $ 579,216 |
Contract liabilities | 172,932 | 171,671 |
Net contract assets (liabilities) | $ 427,177 | $ 407,545 |
Contracts with Customers - Su_3
Contracts with Customers - Summary of Contract Assets and Contract Liabilities (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue From Contract With Customer [Abstract] | ||
Contract retentions | $ 80.5 | $ 91.7 |
Contract retentions, not expected to be paid in next 12 months | 38.2 | |
Contract assets, unapproved change orders, claims, and requests | $ 102.8 | $ 98.6 |
Contracts with Customers - Addi
Contracts with Customers - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | ||
Revenue recognized included contract liability | $ 63,900,000 | $ 69,100,000 |
Impairment of contract assets | 0 | 0 |
Revisions estimate | 0 | |
Impact of changes in estimated claims or incentives on revenue | 5,000,000 | $ 5,000,000 |
Remaining unsatisfied performance obligations | $ 5,500,000,000 |
Contracts with Customers - Su_4
Contracts with Customers - Summary of Changes in Contract Assets and Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Acquired contract assets | $ 5,979 |
Acquired contract liabilities | $ 320 |
Contracts with Customers - Su_5
Contracts with Customers - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue From Contract With Customer [Abstract] | ||
Billed | $ 443,818 | $ 434,776 |
Unbilled | 206,251 | 167,490 |
Total accounts receivable, gross | 650,069 | 602,266 |
Allowance for doubtful accounts | (3,952) | (3,955) |
Total accounts receivable, net | $ 646,117 | $ 598,311 |
Contracts with Customers - Su_6
Contracts with Customers - Summary of Remaining Unsatisfied Performance Obligations Expect to Satisfy (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 5,500,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 2,835,631 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 1,586,807 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 1,120,776 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Federal Solution Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 1,291,914 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Federal Solution Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 748,839 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Federal Solution Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 295,965 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Critical Infrastructure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 1,543,717 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Critical Infrastructure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 837,968 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Critical Infrastructure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 824,811 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Lessee Lease Description [Line Items] | |
Lease option to extend | five years |
Lease existence of option to extend | true |
Lease option to terminate | third year |
Lease existence of option to terminate | true |
Operating lease not yet commenced expense | $ 0 |
Minimum | |
Lessee Lease Description [Line Items] | |
Lease term of contract | 1 year |
Maximum | |
Lessee Lease Description [Line Items] | |
Lease term of contract | 8 years |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 16,176 | $ 16,361 |
Short-term lease cost | 3,480 | 2,032 |
Amortization of right-of-use assets | 548 | 474 |
Interest on lease liabilities | 21 | 29 |
Sublease income | (1,035) | (776) |
Total lease cost | $ 19,190 | $ 18,120 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 17,506 | $ 16,627 |
Operating cash flows for finance leases | 21 | 30 |
Financing cash flows from finance leases | 511 | 480 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 2,304 | 4,865 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 0 | $ 619 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet and Other Information Related to Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Leases: | ||
Right-of-use assets | $ 171,907 | $ 182,672 |
Lease liabilities: | ||
Current | 57,197 | 55,902 |
Long-term | 135,276 | 148,893 |
Total operating lease liabilities | 192,473 | 204,795 |
Finance Leases: | ||
Other noncurrent assets | 3,842 | 4,389 |
Accrued expenses and other current liabilities | $ 1,661 | $ 1,822 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other liabilities current | Other liabilities current |
Other long-term liabilities | $ 2,073 | $ 2,422 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Weighted Average Remaining Lease Term: | ||
Operating leases | 4 years 1 month 6 days | 4 years 3 months 18 days |
Finance leases | 2 years 8 months 12 days | 2 years 10 months 24 days |
Weighted Average Discount Rate: | ||
Operating leases | 3.40% | 3.50% |
Finance leases | 2.10% | 2.10% |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Future Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2022 (remaining) | $ 48,184 | |
2023 | 53,184 | |
2024 | 41,599 | |
2025 | 30,955 | |
2026 | 17,564 | |
Thereafter | 14,607 | |
Total lease payments | 206,093 | |
Less: imputed interest | (13,620) | |
Total present value of lease liabilities | 192,473 | $ 204,795 |
Finance Leases | ||
2022 (remaining) | 1,378 | |
2023 | 1,221 | |
2024 | 812 | |
2025 | 454 | |
2026 | 11 | |
Thereafter | 0 | |
Total lease payments | 3,876 | |
Less: imputed interest | (142) | |
Total present value of lease liabilities | $ 3,734 |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in Carrying Value of Goodwill by Reporting Segment (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 1,412,690 |
Acquisitions | (744) |
Foreign Exchange | 888 |
Ending Balance | 1,412,834 |
Federal Solutions | |
Goodwill [Line Items] | |
Beginning Balance | 1,339,117 |
Acquisitions | (744) |
Ending Balance | 1,338,373 |
Critical Infrastructure | |
Goodwill [Line Items] | |
Beginning Balance | 73,573 |
Foreign Exchange | 888 |
Ending Balance | $ 74,461 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment of goodwill | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Gross Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2020 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 603,418 | $ 602,418 |
Accumulated Amortization | (414,687) | (394,597) |
Net Carrying Amount | 188,731 | 207,821 |
Backlog | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 170,455 | 169,455 |
Accumulated Amortization | (131,981) | (126,637) |
Net Carrying Amount | $ 38,474 | 42,818 |
Amortization Period (in years) | 3 years | |
Customer Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 301,829 | 301,829 |
Accumulated Amortization | (166,221) | (158,405) |
Net Carrying Amount | $ 135,608 | 143,424 |
Amortization Period (in years) | 8 years | |
Leases | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 670 | 670 |
Accumulated Amortization | (623) | (618) |
Net Carrying Amount | $ 47 | 52 |
Amortization Period (in years) | 5 years | |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 113,939 | 113,939 |
Accumulated Amortization | (103,342) | (96,765) |
Net Carrying Amount | $ 10,597 | 17,174 |
Amortization Period (in years) | 4 years | |
Trade Name | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9,200 | 9,200 |
Accumulated Amortization | (8,575) | (8,444) |
Net Carrying Amount | $ 625 | 756 |
Amortization Period (in years) | 1 year | |
Non compete Agreements | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,250 | 5,250 |
Accumulated Amortization | (3,739) | (3,523) |
Net Carrying Amount | $ 1,511 | 1,727 |
Amortization Period (in years) | 3 years | |
In Process Research and Development | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,800 | 1,800 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | 1,800 | 1,800 |
Other Intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 275 | 275 |
Accumulated Amortization | (206) | (205) |
Net Carrying Amount | $ 69 | $ 70 |
Amortization Period (in years) | 10 years |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense of intangible assets | $ 20.1 | $ 24.5 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Estimated Amortization Expense (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2022 | $ 46,164 |
2023 | 50,123 |
2024 | 18,892 |
2025 | 13,637 |
2026 | 10,265 |
Thereafter | 47,850 |
Finite-Lived Intangible Assets, Net | $ 186,931 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 365,349 | $ 363,814 |
Accumulated depreciation | (267,427) | (259,618) |
Property and equipment, net | 97,922 | 104,196 |
Buildings and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 100,961 | 99,543 |
Buildings and Leasehold Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life (years) | 1 year | |
Buildings and Leasehold Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life (years) | 15 years | |
Furniture and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 87,179 | 86,862 |
Furniture and Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Furniture and Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life (years) | 10 years | |
Computer Systems and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 159,280 | 157,633 |
Computer Systems and Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Computer Systems and Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life (years) | 10 years | |
Construction Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 6,806 | 6,806 |
Construction Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life (years) | 5 years | |
Construction Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life (years) | 7 years | |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 11,123 | $ 12,970 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 9.7 | $ 9.6 |
Debt and Credit Facilities - Sc
Debt and Credit Facilities - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Convertible senior notes | $ 400,000 | $ 400,000 |
Long-term debt issuance costs | (7,550) | (8,078) |
Total long-term | 592,450 | 591,922 |
Total Debt | 592,450 | 591,922 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 200,000 | $ 200,000 |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Details) | Jul. 01, 2014USD ($) | Jul. 31, 2021USD ($) | Jun. 30, 2021USD ($)Extension | Aug. 31, 2020USD ($)d$ / sharesshares | Mar. 31, 2022USD ($)d$ / sharesshares | Mar. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Jan. 01, 2021USD ($) | Aug. 10, 2020USD ($) |
Debt Instrument [Line Items] | |||||||||||
Letters of credit outstanding amount | $ 220,600,000 | $ 223,000,000 | |||||||||
Deferred tax liabilities | 11,793,000 | 11,400,000 | |||||||||
Deferred tax assets | 137,015,000 | 134,393,000 | |||||||||
Level 2 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes, fair value | 208,400,000 | ||||||||||
Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, outstanding amount | 200,000,000 | 200,000,000 | |||||||||
Senior Note, Series A | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior note, amount paid | $ 50,000,000 | ||||||||||
Convertible Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 0.25% | ||||||||||
Interest expense | $ 700,000 | $ 700,000 | $ 4,400,000 | ||||||||
Debt amount | $ 400,000,000 | ||||||||||
Exercise of option by initial purchasers aggregate principal amount | 50,000,000 | ||||||||||
Proceeds from issuance and sale of debt | 389,700,000 | ||||||||||
Transaction fees and other third-party offering expenses | $ 10,300,000 | ||||||||||
Debt instrument, payment terms | The Convertible Senior Notes accrue interest at a rate of 0.25% per annum, payable semi-annually on February 15 and August 15 of each year beginning on February 15, 2021 | ||||||||||
Debt instrument, frequency of periodic payment | semi-annually | ||||||||||
Maturity Date | Aug. 15, 2025 | ||||||||||
Convertible note converted each amount | $ 1,000 | ||||||||||
Convertible notes converted each into shares of common stock | shares | 22.2913 | ||||||||||
Debt Instrument, conversion price | $ / shares | $ 44.86 | ||||||||||
Threshold trading days | d | 20 | 51 | |||||||||
Threshold consecutive trading days | d | 30 | ||||||||||
Conversion percentage of stock price trigger | 130.00% | ||||||||||
Number of business day period | 5 days | ||||||||||
Consecutive trading day period | 5 days | ||||||||||
Convertible principal amount | $ 1,000 | ||||||||||
Measurement period, percentage | 98.00% | ||||||||||
Percentage of principal amount to redeem convertible senior notes | 100.00% | ||||||||||
Percentage of convertible senior notes repurchased at cash | 100.00% | ||||||||||
Debt liability | $ 336,100,000 | ||||||||||
Debt instrument convertible notes additional paid in capital | $ 53,600,000 | ||||||||||
Convertible senior notes effective interest rate | 3.25% | ||||||||||
Net carrying value of notes | $ 400,000,000 | $ 340,600,000 | 400,000,000 | ||||||||
Bond hedge term | 5 years | ||||||||||
Number of shares issuable upon conversion | shares | 8,900,000 | ||||||||||
Cost of convertible note hedge transaction | $ 55,000,000 | ||||||||||
Number of common stock acquired by offsetting sale warrants. | shares | 8,900,000 | ||||||||||
Exercise price of warrants | $ / shares | $ 66.46 | ||||||||||
Cash proceeds from sales of warrants | $ 13,800,000 | ||||||||||
Convertible Senior Notes | ASU 2020-06 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Reclassification of equity component of convertible senior notes to liabilities | 55,000,000 | ||||||||||
Reclassification of equity component of debt issuance costs to liabilities | 1,400,000 | ||||||||||
Carrying amount of convertible senior notes adjusted in retained earnings | $ 3,700,000 | ||||||||||
Convertible Note Hedge And Warrant Transaction | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Purchase of bond hedges and sale of warrants | $ 41,200,000 | ||||||||||
Deferred tax liabilities | 16,200,000 | ||||||||||
Deferred tax assets | 16,500,000 | ||||||||||
Convertible Note Hedge And Warrant Transaction | ASU 2020-06 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred tax liability reversed | 13,900,000 | ||||||||||
Additional deferred tax liability related to capitalized debt issuance costs | 400,000 | ||||||||||
Adjustment to deferred tax asset through retained earnings | 900,000 | ||||||||||
Private Placement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance costs incurred | $ 1,100,000 | $ 500,000 | |||||||||
Debt amount | 250,000,000 | ||||||||||
Interest payments | 5,100,000 | 6,200,000 | |||||||||
Private Placement | Accrued Expenses and Other Current Liabilities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest payable | 2,200,000 | $ 4,700,000 | |||||||||
Private Placement | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense | $ 2,600,000 | 3,200,000 | |||||||||
Private Placement | Senior Note, Series A | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt amount | $ 50,000,000 | ||||||||||
Maturity Date | Jul. 15, 2021 | ||||||||||
Minimum [Member] | Convertible Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, conversion price | $ / shares | $ 44.86 | ||||||||||
Percentage of bond hedge and warrant transactions increased conversion price | 35.00% | ||||||||||
Maximum | Convertible Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, conversion price | $ / shares | $ 66.46 | ||||||||||
Percentage of bond hedge and warrant transactions increased conversion price | 100.00% | ||||||||||
Unsecured Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit agreement date | Jun. 30, 2021 | ||||||||||
Revolving credit facility | $ 650,000,000 | $ 650,000,000 | |||||||||
Debt issuance costs incurred | 1,900,000 | 1,900,000 | |||||||||
Revolving credit facility | $ 550,000,000 | $ 550,000,000 | |||||||||
Credit agreement maturity period | 5 years | ||||||||||
Credit agreement number of extensions | Extension | 2 | ||||||||||
Interest rate | 1.70% | 1.36% | |||||||||
Letters of credit outstanding amount | $ 44,500,000 | $ 44,300,000 | |||||||||
Interest expense | 100,000 | $ 100,000 | |||||||||
Debt instrument, outstanding amount | $ 0 | ||||||||||
Unsecured Revolving Credit Facility | Base Rate | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Margin interest rate | 0.00% | ||||||||||
Unsecured Revolving Credit Facility | Base Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Margin interest rate | 0.625% | ||||||||||
Unsecured Revolving Credit Facility | Euro Currency Rate | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Margin interest rate | 1.00% | ||||||||||
Unsecured Revolving Credit Facility | Euro Currency Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Margin interest rate | 1.625% |
Debt and Credit Facilities - _2
Debt and Credit Facilities - Schedule of Aggregate Amount of Debt (Details) - Private Placement $ in Thousands | Jul. 01, 2014USD ($) |
Debt Instrument [Line Items] | |
Debt Amount | $ 250,000 |
Senior Note, Series A | |
Debt Instrument [Line Items] | |
Debt Amount | $ 50,000 |
Maturity Date | Jul. 15, 2021 |
Interest Rates | 4.44% |
Senior Note, Series B | |
Debt Instrument [Line Items] | |
Debt Amount | $ 100,000 |
Maturity Date | Jul. 15, 2024 |
Interest Rates | 4.98% |
Senior Note, Series C | |
Debt Instrument [Line Items] | |
Debt Amount | $ 60,000 |
Maturity Date | Jul. 15, 2026 |
Interest Rates | 5.13% |
Senior Note, Series D | |
Debt Instrument [Line Items] | |
Debt Amount | $ 40,000 |
Maturity Date | Jul. 15, 2029 |
Interest Rates | 5.38% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 25.40% | 27.70% | |
U.S. corporate tax rate | 21.00% | ||
Deferred tax assets, valuation allowance | $ 28 | ||
Liability for income taxes associated with uncertain tax positions | 22.5 | $ 21.2 | |
Decrease in uncertain tax positions during the next twelve months | $ 0.5 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022Claim | |
Commitments And Contingencies Disclosure [Abstract] | |
Number of claims outstanding | 0 |
Retirement Benefit Plan - Addit
Retirement Benefit Plan - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Shares fully vested, Description | Shares allocated to a participant’s account are fully vested after three years of credited service, or in the event(s) of reaching age 65, death or disability while an active employee of the Company. | ||
Shares fully vested after credited service | 3 years | ||
Common stock shares outstanding including ESOP | 103,730,134 | 103,659,731 | |
Company's stock held by ESOP | 68,787,554 | 70,328,237 | |
Direct Costs of Contracts and Selling, General and Administrative Expense | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
ESOP contribution expense | $ 13.1 | $ 13.2 |
Investments in and Advances t_3
Investments in and Advances to Joint Ventures - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule Of Equity Method Investments [Line Items] | |||
Letters of credit outstanding amount | $ 220.6 | $ 223 | |
Unconsolidated Joint Ventures | |||
Schedule Of Equity Method Investments [Line Items] | |||
Net distributions from (contributions to) unconsolidated joint ventures | 2.8 | $ 5.4 | |
Consolidated Joint Ventures | |||
Schedule Of Equity Method Investments [Line Items] | |||
Letters of credit outstanding amount | $ 73.2 | $ 73.2 |
Investments in and Advances t_4
Investments in and Advances to Joint Ventures - Summary of Financial Information for Consolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule Of Equity Method Investments [Line Items] | |||
Current assets | $ 1,640,966 | $ 1,632,351 | |
Total assets | 3,808,841 | 3,830,940 | |
Current liabilities | 1,008,855 | 1,030,784 | |
Total liabilities | 1,858,216 | 1,893,828 | |
Total joint venture equity | 1,918,187 | 1,900,768 | |
Revenue | 949,069 | $ 874,697 | |
Costs | 733,900 | 669,082 | |
Net income attributable to Parsons Corporation | 20,667 | 9,039 | |
Net income attributable to noncontrolling interests | 3,176 | 4,975 | |
Consolidated Joint Ventures | |||
Schedule Of Equity Method Investments [Line Items] | |||
Current assets | 214,229 | 246,342 | |
Noncurrent assets | 2,338 | 2,180 | |
Total assets | 216,567 | 248,522 | |
Current liabilities | 150,474 | 175,637 | |
Total liabilities | 150,474 | 175,637 | |
Total joint venture equity | 66,093 | $ 72,885 | |
Revenue | 95,534 | 96,624 | |
Costs | 88,842 | 86,306 | |
Net income attributable to Parsons Corporation | 6,692 | 10,318 | |
Net income attributable to noncontrolling interests | $ 3,176 | $ 4,975 |
Investments in and Advances t_5
Investments in and Advances to Joint Ventures - Summary of Financial Information for Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule Of Equity Method Investments [Line Items] | |||
Current assets | $ 1,640,966 | $ 1,632,351 | |
Total assets | 3,808,841 | 3,830,940 | |
Current liabilities | 1,008,855 | 1,030,784 | |
Total liabilities | 1,858,216 | 1,893,828 | |
Total joint venture equity | 1,918,187 | 1,900,768 | |
Investments in and advances to unconsolidated joint ventures | 114,234 | 110,688 | |
Revenue | 949,069 | $ 874,697 | |
Costs | 733,900 | 669,082 | |
Net income attributable to Parsons Corporation | 20,667 | 9,039 | |
Equity in earnings of unconsolidated joint ventures | 5,598 | 7,530 | |
Unconsolidated Joint Ventures | |||
Schedule Of Equity Method Investments [Line Items] | |||
Current assets | 1,707,836 | 1,620,735 | |
Noncurrent assets | 539,798 | 531,261 | |
Total assets | 2,247,634 | 2,151,996 | |
Current liabilities | 1,252,393 | 1,088,985 | |
Noncurrent liabilities | 603,929 | 669,911 | |
Total liabilities | 1,856,322 | 1,758,896 | |
Total joint venture equity | 391,312 | 393,100 | |
Investments in and advances to unconsolidated joint ventures | 114,234 | $ 110,688 | |
Revenue | 384,581 | 236,517 | |
Costs | 373,286 | 210,847 | |
Net income attributable to Parsons Corporation | 11,295 | 25,670 | |
Equity in earnings of unconsolidated joint ventures | $ 5,598 | $ 7,530 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Unconsolidated joint ventures - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Revenues | $ 47.3 | $ 53.7 |
Reimbursable cost incurred | $ 33.7 | $ 41.4 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Consolidated Balance Sheet Related to Services Provided to Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Contract assets | $ 600,109 | $ 579,216 |
Contract liabilities | 172,932 | 171,671 |
Unconsolidated Joint Ventures | ||
Related Party Transaction [Line Items] | ||
Accounts receivable | 36,097 | 30,246 |
Contract assets | 19,819 | 16,069 |
Contract liabilities | $ 11,466 | $ 10,605 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Aug. 31, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares of common stock repurchased | 100,000,000 | ||
Stock repurchase program commencement date | Aug. 12, 2021 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 72,800,000 | ||
Stock-based Awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 13,117 | 145 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Weighted Average Number of Shares Used To Compute Basic and Diluted EPS (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Basic weighted average number of shares outstanding | 103,768,636 | 102,375,923 |
Stock-based awards | 779,834 | 573,048 |
Convertible senior notes | 8,916,530 | 8,916,530 |
Diluted weighted average number of shares outstanding | 113,465,000 | 111,865,501 |
Earnings Per Share - Net Income
Earnings Per Share - Net Income Available to Shareholders to Compute Basic and Diluted EPS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Parsons Corporation | $ 20,667 | $ 9,039 |
Convertible senior notes if-converted method interest adjustment | 540 | 528 |
Diluted net income attributable to Parsons Corporation | $ 21,207 | $ 9,567 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Repurchase Program (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Earnings Per Share [Abstract] | |
Total shares repurchased | 151,436 |
Total shares retired | 151,436 |
Average price paid per share | $ / shares | $ 36.64 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Revenues | $ 949,069 | $ 874,697 | |
Property and equipment, net | 97,922 | $ 104,196 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 718,000 | $ 652,200 | |
Property and equipment, net | $ 89,000 | $ 95,000 |
Segment Information - Summary o
Segment Information - Summary of Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 949,069 | $ 874,697 |
Federal Solution Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 491,629 | 452,069 |
Critical Infrastructure | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 457,440 | $ 422,628 |
Segment Information - Summary_2
Segment Information - Summary of Adjusted EBITDA Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Adjusted EBITDA attributable to Parsons Corporation | ||
Adjusted EBITDA attributable to Parsons Corporation | $ 70,953 | $ 63,639 |
Adjusted EBITDA attributable to noncontrolling interests | 3,295 | 5,060 |
Depreciation and amortization | (30,509) | (34,673) |
Interest expense, net | (3,873) | (4,443) |
Income tax expense | (8,119) | (5,375) |
Equity-based compensation expense | (3,898) | (6,980) |
Transaction-related costs | (2,398) | (2,646) |
Restructuring expense | (213) | (77) |
Other | (1,395) | (491) |
Net income including noncontrolling interests | 23,843 | 14,014 |
Net income attributable to noncontrolling interests | 3,176 | 4,975 |
Net income attributable to Parsons Corporation | 20,667 | 9,039 |
Federal Solution Segment | ||
Adjusted EBITDA attributable to Parsons Corporation | ||
Adjusted EBITDA attributable to Parsons Corporation | 42,638 | 31,982 |
Critical Infrastructure | ||
Adjusted EBITDA attributable to Parsons Corporation | ||
Adjusted EBITDA attributable to Parsons Corporation | $ 28,315 | $ 31,657 |
Segment Information - Summary_3
Segment Information - Summary of Revenues and Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 949,069 | $ 874,697 | |
Property and Equipment, Net | 97,922 | $ 104,196 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Revenues | 785,708 | 716,346 | |
Property and Equipment, Net | 94,481 | 100,674 | |
Middle East | |||
Segment Reporting Information [Line Items] | |||
Revenues | 158,063 | 153,643 | |
Property and Equipment, Net | 3,441 | $ 3,522 | |
Rest of World | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 5,298 | $ 4,708 |
Segment Information - Summary_4
Segment Information - Summary of Revenues by Business Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 949,069 | $ 874,697 |
Federal Solution Segment | ||
Segment Reporting Information [Line Items] | ||
Revenues | 491,629 | 452,069 |
Federal Solution Segment | Defense And Intelligence | ||
Segment Reporting Information [Line Items] | ||
Revenues | 346,233 | 311,102 |
Federal Solution Segment | Engineered Systems | ||
Segment Reporting Information [Line Items] | ||
Revenues | 145,396 | 140,967 |
Critical Infrastructure | ||
Segment Reporting Information [Line Items] | ||
Revenues | 457,440 | 422,628 |
Critical Infrastructure | Connected Communities | ||
Segment Reporting Information [Line Items] | ||
Revenues | 162,654 | 141,032 |
Critical Infrastructure | Mobility Solutions | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 294,786 | $ 281,596 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Apr. 20, 2022Installment |
Subsequent Event | |
Subsequent Event [Line Items] | |
Number of annual installments | 3 |