Segment Information (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024		March 31, 2023
Federal Solutions revenue	$	909,608	$	634,546
Critical Infrastructure revenue		626,068		538,920
Total revenue	$	1,535,676	$	1,173,466

	Three Months Ended
	March 31, 2024			March 31, 2023
Equity in (losses) earnings of unconsolidated joint ventures:
Federal Solutions	$	(469	)	$	1,112
Critical Infrastructure		(1,591	)		(6,952	)
Total equity in (losses) earnings of unconsolidated joint ventures	$	(2,060	)	$	(5,840	)

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, 2024			March 31, 2023
Federal Solutions	$	92,541		$	56,148
Critical Infrastructure		32,963			24,357
Adjusted EBITDA attributable to Parsons Corporation		125,504			80,505
Adjusted EBITDA attributable to noncontrolling interests		15,589			9,886
Depreciation and amortization		(24,531	)		(28,359	)
Interest expense, net		(11,846	)		(5,665	)
Income tax benefit (expense)		32,234			(11,503	)
Equity-based compensation expense		(12,656	)		(6,703	)
Loss on extinguishment of debt		(211,018	)		-
Transaction-related costs (a)		(2,886	)		(1,618	)
Restructuring expense (b)		-			(546	)
Other (c)		(2,502	)		(721	)
Net (loss) income including noncontrolling interests		(92,112	)		35,276
Net income attributable to noncontrolling interests		15,243			9,723
Net (loss) income attributable to Parsons Corporation	$	(107,355	)	$	25,553

(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, 2024		March 31, 2023
Revenue
North America	$	1,272,250	$	948,715
Middle East		258,921		217,398
Rest of World		4,505		7,353
Total Revenue	$	1,535,676	$	1,173,466

The geographic location of revenue is determined by the location of the customer.

	March 31, 2024		December 31, 2023
Property and Equipment, Net
North America	$	90,189	$	91,766
Middle East		8,310		7,191
Total Property and Equipment, Net	$	98,499	$	98,957

Summary of Revenues by Business Lines

The following table presents revenues by business units (in thousands):

	Three Months Ended
	March 31, 2024		March 31, 2023
Revenue
Defense and Intelligence	$	408,388	$	364,360
Engineered Systems		501,220		270,186
Federal Solutions revenues		909,608		634,546
Infrastructure – North America		365,282		319,559
Infrastructure – Europe, Middle East and Africa		260,786		219,361
Critical Infrastructure revenues		626,068		538,920
Total Revenue	$	1,535,676	$	1,173,466

Effective October 1, 2023, the Company reorganized its Critical Infrastructure business units from Mobility Solutions and Connected Communities to Infrastructure – North America and Infrastructure – Europe, Middle East and Africa. The prior year information in the table above has been reclassified to conform to the business unit changes.