Quarterly Information - Unaudited

12 Months Ended

Dec. 31, 2024

Quarterly Financial Information Disclosure [Abstract]

21.

Quarterly Information - Unaudited

The following table presents selected quarterly financial information (in thousands except per share data).


	Quarter Ended
	March 31, 2024			December 31, 2024
Federal Solutions revenue	$	909,608		$	1,003,323
Critical Infrastructure revenue		626,068			730,994
Total revenue		1,535,676			1,734,317
Operating income		101,844			99,812
Convertible debt repurchase loss (1)		(18,355	)		-
Income tax expense (1)		(13,324	)		(18,729	)
Net income attributable to Parsons Corporation (1)		39,750			54,180
Earnings per share:
Basic	$	0.37		$	0.51
Diluted (2)	$	0.37		$	0.49

1 Presents the revised quarterly financial data resulting from the adoption of Accounting Standards Update (“ASU”) 2024-04 as of January 1, 2024 on a prospective basis. As a result of the adoption of ASU 2024-04, the Company reversed a loss on extinguishment of debt for the partial repurchase of the Convertible Senior Notes due 2025 and recorded the repurchase transaction as an induced conversion. This change from extinguishment to inducement accounting resulted in the Company (i.) reversing the $211.0 million loss and the related $49.9 million tax benefit on extinguishment of debt, recorded in Q1 2024, (ii.) recording a $18.4 million convertible debt repurchase loss, (iii.) the difference between the extinguishment loss and inducement expense of $192.6 million recorded to equity, and (iv.) the related tax benefit of $45.6 million recorded to equity. See "Note 2—Summary of Significant Accounting Polices—New Accounting Pronouncements" for a further discussion of the first quarter 2024 extinguishment accounting and subsequent change to inducement accounting.

2 Diluted earnings per share prior to the adoption of ASU 2024-04 did not include certain adjustments as their inclusion would have been antidilutive. Subsequent to the adoption of ASU 2024-04 these adjustments are no longer antidilutive. Dilutive adjustments include if converted interest of $2.8 million, 1.5 million shares related to stock based awards and 6.8 million shares related to convertible senior notes. Inclusion of these dilution adjustments resulted in dilutive net income attributable to Parsons Corporation of $42.5 million and total diluted shares of 114.4 million for the quarter ended March 31, 2024.