16 unchanged sentences
however, the curtailment of work under these projects and the CARES Act benefits did not have a material impact on our financial condition or results of operations.
−Removed: The reimbursement period for Section 3610 of the CARES Act expired March 31, 2021.
+Added: The reimbursement period for Section 3610 of the CARES Act expired September 30, 2021.
The Company has provided additional disclosure around liquidity and capital resources which can be found in the “Liquidity and Capital Resources” section in Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.
17 unchanged sentences
The following table sets forth selected key metrics (in thousands, except Book-to-Bill):
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Awards (year to date)
Book-to-Bill (year to date)
−Removed: Difference between our backlog of $8.4 billion and our remaining unsatisfied performance obligations, or RUPO, of $5.1 billion, each as of June 30, 2021, is due to (i) unissued task orders and unexercised option years, to the extent their issuance or exercise is probable, as well as (ii) contract awards, to the extent we believe contract execution and funding is probable.
+Added: Difference between our backlog of $8.6 billion and our remaining unsatisfied performance obligations, or RUPO, of $6.0 billion, each as of September 30, 2021, is due to (i) unissued task orders and unexercised option years, to the extent their issuance or exercise is probable, as well as (ii) contract awards, to the extent we believe contract execution and funding is probable.
Awards generally represent the amount of revenue expected to be earned in the future from funded and unfunded contract awards received during the period.
3 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Federal Solutions
2 unchanged sentences
The volume of contract awards can fluctuate in any given period due to win rate and the timing and size of the awards issued by our customers.
−Removed: The change in new awards in our Federal Solutions segment for the three and six months ended June 30, 2021 when compared to the corresponding periods last year were primarily impacted by one significant contract awarded in the second quarter of 2021.
−Removed: The awards in Critical Infrastructure for the six months ended June 30, 2021 were impacted by several large contracts awarded in the first quarter of 2021.
+Added: The change in new awards in our Federal Solutions segment for the three months ended September 30, 2021 when compared to the corresponding period last year was primarily impacted by one large contract awarded in the third quarter of 2020.
+Added: The change in new awards in our Federal Solutions segment for the nine months ended September 30, 2021 when compared to the corresponding period last year was primarily impacted by one significant contract awarded in the second quarter of 2021.
+Added: The awards in Critical Infrastructure for the nine months ended September 30, 2021 were impacted by several large contracts awarded in the first quarter of 2021.
We define backlog to include the following two components:
4 unchanged sentences
(in thousands) :
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Federal Solutions:
3 unchanged sentences
Total Backlog (1)
−Removed: Difference between our backlog of $8.4 billion and our RUPO of $5.1 billion, each as of June 30, 2021, is due to (i) unissued task orders and unexercised option years, to the extent their issuance or exercise is probable, as well as (ii) contract awards, to the extent we believe contract execution and funding is probable.
+Added: Difference between our backlog of $8.6 billion and our RUPO of $6.0 billion, each as of September 30, 2021, is due to (i) unissued task orders and unexercised option years, to the extent their issuance or exercise is probable, as well as (ii) contract awards, to the extent we believe contract execution and funding is probable.
Our backlog includes orders under contracts that in some cases extend for several years.
3 unchanged sentences
As a result, our federal contracts typically are only partially funded at any point during their term.
−Removed: A ll or some of the work to be performed under the contracts may remain unfunded unless and until the U.S.
+Added: All or some of the work to be performed under the contracts may remain unfunded unless and until the U.S.
Congress makes subsequent appropriations and the procuring agency allocates funding to the contract.
−Removed: We expect to recognize $2.7 billion of our funded backlog at June 30, 2021 as revenues in the following twelve months.
+Added: We expect to recognize $2.9 billion of our funded backlog at September 30, 2021 as revenues in the following twelve months.
However, our U.S.
9 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Federal Solutions
2 unchanged sentences
We believe that the financial performance of our business and our future success are dependent upon many factors, including those highlighted in this section.
−Removed: Our operating performance will depend upon many variables, including the success of our growth strategies and the timing and size of investments and expenditures that we choose to undertake, as well as market growth and other factors that are not within our control.
+Added: Our operating performance will depend upon many variables, including
+Added: the success of our growth strategies and the timing and size of investments and expenditures that we choose to undertake, as well as market growth and other factors that are not within our control.
Government Spending
4 unchanged sentences
There is uncertainty around the timing, extent, nature and effect of Congressional and other U.S.
−Removed: government actions to address budgetary constraints, caps on the discretionary budget for defense and non-defense departments and
−Removed: agencies, and the ability of Congress to determine how to allocate the available budget authority and pass appropriations bills to fund both U.S.
+Added: government actions to address budgetary constraints, caps on the discretionary budget for defense and non-defense departments and agencies, and the ability of Congress to determine how to allocate the available budget authority and pass appropriations bills to fund both U.S.
government departments and agencies that are, and those that are not, subject to the caps.
16 unchanged sentences
Acquired Operations
+Added: Echo Ridge LLC
+Added: On July 30, 2021, we acquired Echo Ridge LLC for $9.0 million.
+Added: Echo Ridge adds position, navigation, and timing devices;
+Added: modeling, simulation, test, and measurement tools;
+Added: and deployable software defined radio products and signal processing services to Parsons’ space portfolio.
+Added: The acquisition was funded by cash on-hand.
+Added: The financial results of Echo Ridge have been included in our consolidated results of operations from July 30, 2021 onward.
+Added: BlackHorse Solutions, Inc.
+Added: On July 6, 2021, we acquired BlackHorse for $205.0 million.
+Added: BlackHorse expands Parsons’ capabilities and products in next-generation military, intelligence, and space operations, specifically in cyber electronic warfare, and information dominance.
+Added: The acquisition was funded by cash on-hand.
+Added: The financial results of BlackHorse have been included in our consolidated results of operations from July 6, 2021 onward.
Braxton Science & Technology Group, LLC
32 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Time-and-materials
17 unchanged sentences
For the joint ventures we do not control, we recognize equity in earnings (loss) of unconsolidated joint ventures.
−Removed: Our revenues included amounts related to services we provided to our unconsolidated joint ventures for the three months ended June 30, 2021 and June 30, 2020 of $40.5 million and $42.4 million, respectively, and for the six months ended June 30, 2021 and June 30, 2020 of $82.4 million and $82.8 million, respectively.
+Added: Our revenues included amounts related to services we provided to our unconsolidated joint ventures for the three months ended September 30, 2021 and September 30, 2020 of $37.1 million and $42.0 million, respectively, and for the nine months ended September 30, 2021 and September 30, 2020 of $119.5 million and $124.7 million, respectively.
Operating costs and expenses
Operating costs and expenses primarily include direct costs of contracts and selling, general and administrative expenses.
−Removed: Costs associated with compensation-related expenses for our people and facilities, which includes ESOP
−Removed: contribution expenses, are the most significant component of our operating expenses.
−Removed: Total ESOP contribution expense for the three months ended June 3 0 , 2021 and June 3 0 , 2020 was $ 1 3 .
−Removed: 4 million and $ 1 4 .
−Removed: 6 million , respectively , and for the six months ended June 30, 2021 and June 30, 2020 was $26.5 million and $29.5 million, respectively , and is recorded in “Direct cost of contracts” and “ Selling , general and administrative expenses.”
+Added: Costs associated with compensation-related expenses for our people and facilities, which includes ESOP contribution expenses, are the most significant component of our operating expenses.
+Added: Total ESOP contribution expense for the three months ended September 30, 2021 and September 30, 2020 was $14.8 million and $12.5 million, respectively, and for the nine months ended September 30, 2021 and September 30, 2020 was $41.3 million and $42.0 million, respectively, and is recorded in “Direct cost of contracts” and “Selling, general and administrative expenses.”
Direct costs of contracts consist of direct labor and associated fringe benefits, indirect overhead, subcontractor and materials (“pass-through costs”), travel expenses and other expenses incurred to perform on contracts.
7 unchanged sentences
Adjusted EBITDA
−Removed: The following table sets forth Adjusted EBITDA, Net Income Margin, and Adjusted EBITDA Margin for the three and six months ended June 30, 2021 and June 30, 2020.
+Added: The following table sets forth Adjusted EBITDA, Net Income Margin, and Adjusted EBITDA Margin for the three and nine months ended September 30, 2021 and September 30, 2020.
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
dollars in thousands)
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Adjusted EBITDA (1)
5 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Net income attributable to Parsons Corporation
18 unchanged sentences
Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future, including, among other things, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized.
−Removed: Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA supplementally.
+Added: Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA
+Added: supplementally.
Our measure of Adjusted EBITDA is not necessarily comparable to similarly titled captions of other companies due to different methods of calculation.
1 unchanged sentence
Three Months Ended
−Removed: Six Months Ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Federal Solutions Adjusted EBITDA attributable to Parsons Corporation
2 unchanged sentences
Total Adjusted EBITDA
−Removed: The following table sets forth our results of operations for the three and six months ended June 30, 2021 and June 30, 2020 as a percentage of revenue.
+Added: The following table sets forth our results of operations for the three and nine months ended September 30, 2021 and September 30, 2020 as a percentage of revenue.
Three Months Ended
−Removed: Six Months Ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Direct costs of contracts
12 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
dollars in thousands)
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: Revenue decreased $100.1 million for the three months ended June 30, 2021 when compared to the corresponding period last year, primarily due to a decrease in revenue in our Critical Infrastructure segment of $60.6 million and a decrease in our Federal Solutions segment of $39.5 million.
−Removed: Revenue decreased $196.4 million for the six months ended June 30, 2021 when compared to the corresponding period last year, primarily due to a decrease in our Critical Infrastructure segment of $131.4 million and a decrease in our Federal Solutions segment of $65.0 million.
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
+Added: Revenue decreased $48.2 million for the three months ended September 30, 2021 when compared to the corresponding period last year, primarily due to a decrease in revenue in our Critical Infrastructure segment of $49.3 million.
+Added: Revenue decreased $244.6 million for the nine months ended September 30, 2021 when compared to the corresponding period last year, primarily due to a decrease in our Critical Infrastructure segment of $180.7 million and a decrease in our Federal Solutions segment of $63.9 million.
See “Segment Results” below for a further discussion.
1 unchanged sentence
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
dollars in thousands)
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Direct costs of contracts
−Removed: Direct cost of contracts decreased $69.0 million for the three months ended June 30, 2021 when compared to the corresponding period last year, primarily due to decreases of $39.6 million in our Critical Infrastructure segment and $29.4 million in our Federal Solutions segment.
+Added: Direct cost of contracts decreased $54.1 million for the three months ended September 30, 2021 when compared to the corresponding period last year, primarily due to decreases of $48.4 million in our Critical Infrastructure segment and $5.8 million in our Federal Solutions segment.
The decrease in our Critical Infrastructure segment was primarily due to a decrease in business volume, particularly the winding down of several programs with high levels of pass-through costs.
−Removed: The decrease in our Federal Solutions segment was primarily due to a decrease in business volume.
−Removed: Direct cost of contracts decreased $169.5 million for the six months ended June 30, 2021 when compared to the corresponding period last year, primarily due to decreases of $111.2 million in our Critical Infrastructure segment and $58.3 million in our Federal Solutions segment.
+Added: The decrease in our Federal Solutions segment was primarily due to decrease in business volume on lower margin contracts with pass-through costs.
+Added: Direct cost of contracts decreased $223.7 million for the nine months ended September 30, 2021 when compared to the corresponding period last year, primarily due to decreases of $159.6 million in our Critical Infrastructure segment and $64.1 million in our Federal Solutions segment.
The decrease in our Critical Infrastructure segment was primarily due to a decrease in business volume, particularly the winding down of several programs with high levels of pass-through costs.
2 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
dollars in thousands)
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Equity in earnings of unconsolidated joint ventures
−Removed: Equity in earnings of unconsolidated joint ventures increased $5.7 million and $7.1 million for the three and six months ended June 30, 2021 compared to the corresponding periods last year, primarily related to new joint ventures, and increased activity and margins in certain existing joint ventures, partially offset by write-downs of $1.6 million and $5.1 million for the three and six months ended June 30, 2021, respectively, on an unconsolidated joint venture in the Critical Infrastructure segment and reductions in activity on others.
+Added: Equity in earnings of unconsolidated joint ventures decreased $7.2 million for the three months ended September 30, 2021 compared to the corresponding period last year, primarily related to write-downs of $5.5 million.
+Added: Equity in earnings of unconsolidated joint ventures increased $0.1 million for the nine months ended September 30, 2021 compared to the corresponding period last year, primarily related to new joint ventures and increased activity and margins in certain existing joint ventures, offset by write-downs of $10.6 million on an unconsolidated joint venture in the Critical Infrastructure segment and reductions in activity on others.
Selling, general and administrative expenses
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
dollars in thousands)
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Selling, general and administrative expenses
−Removed: Selling, general and administrative expenses (“SG&A”) for the three months ended June 30, 2021 and June 30, 2020 include $4.9 million and $12.9 million, respectively, and for the six months ended June 30, 2021 and June 30, 2020 include $11.9 million and $5.1 million, respectively, of compensation cost related to equity-based awards.
+Added: Selling, general and administrative expenses (“SG&A”) for the three months ended September 30, 2021 and September 30, 2020 include $3.2 million and $(1.1) million, respectively, and for the nine months ended September 30, 2021 and September 30, 2020 include $15.1 million and $4.1 million, respectively, of compensation cost related to equity-based awards.
Equity awards issued prior to the Company’s IPO were settled in cash and were remeasured to an updated fair value at each reporting period until the award was settled.
3 unchanged sentences
Subsequent to the IPO, the share price of the Company’s common stock is based on quoted prices on the New York Stock Exchange.
−Removed: Excluding the compensation costs discussed above, SG&A for the three months ended June 30, 2021 and June 30, 2020 was $183.3 million and $174.8 million, respectively and for the six months ended June 30, 2021 and June 30, 2020 was $363.9 million and $366.3 million, respectively.
−Removed: The increase in SG&A of $8.5 million, exclusive of equity compensation cost, for the three months ended June 30, 2021 when compared to the corresponding period last year was primarily due to a $6.3 million increase in transaction-related costs, a $5.4 million increase from acquisitions, and a $2.4 million increase in intangible asset amortization.
−Removed: These increases were partially offset by a $1.0 million decrease in restructuring costs and $4.6 million decrease in other costs.
−Removed: The decrease in SG&A of $2.4 million, exclusive of equity compensation cost, for the six months ended June 30, 2021 when compared to the corresponding period last year was primarily due to a $3.3 million decrease in transaction-
−Removed: related costs, a $1.0 million decrease in restructuring costs and $ 13 .
−Removed: 0 million decrease in other costs.
−Removed: These were partially offset by a $10.7 million increase from acquisitions and a $4.2 million increase in intangible asset amortization .
+Added: Excluding the compensation costs discussed above, S G&A for the three months e nded September 30 , 202 1 and September 3 0 , 2020 was $ 1 8 8 .
+Added: 0 million and $ 1 66 .
+Added: 9 million, respectively , and for the nine months ended September 30, 2021 and September 30, 2020 was $ 551 .
+Added: 9 million and $ 533 .
+Added: 2 million, respectively .
+Added: The increase in SG&A of $21.1 million, exclusive of equity compensation cost, for the three months ended September 30, 2021 when compared to the corresponding period last year was primarily due to a $8.7 million increase from acquisitions, a $7.1 million increase in insurance costs, and a $6.2 million increase in intangible asset amortization.
+Added: These increases were partially offset by a $0.9 million decrease in other costs.
+Added: The increase in SG&A of $18.7 million, exclusive of equity compensation cost, for the nine months ended September 30, 2021 when compared to the corresponding period last year was primarily due to a $19.4 million increase from acquisitions and an $11.0 million increase in intangible asset amortization.
+Added: These were partially offset by a $5.0 million decrease in incentive costs, a $3.5 million decrease in transaction-related costs, and a $3.2 million decrease in other costs.
Total other income (expense)
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
dollars in thousands)
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Interest income
7 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
dollars in thousands)
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Income tax expense
−Removed: The Company’s effective tax rate was 24.2% and 27.6% for the three months ended June 30, 2021 and 2020, respectively.
−Removed: The change in the effective tax rate was due primarily to an increase in untaxed income attributable to noncontrolling interests and a change in jurisdictional earnings.
−Removed: The Company’s effective tax rate for the six months ended June 30, 2021 and June 30, 2020 was 26.1% and 27.2%, respectively.
−Removed: The change in effective tax rate was due primarily to an increase in untaxed income attributed to noncontrolling interests and a change in jurisdictional earnings, partially offset by an increase in foreign tax losses which will not provide any tax benefit and a settlement of a state tax audit.
+Added: The Company’s effective tax rate was 25.5% and 25.6% for the three months ended September 30, 2021 and 2020, respectively.
+Added: The decrease in the effective tax rate was due primarily to an increase in untaxed income attributable to noncontrolling interests , release of a valuation allowance on foreign tax credits utilized on the 2020 federal return, and a change in jurisdictional earnings, partially offset by a write down of a foreign tax receivable..
+Added: The Company’s effective tax rate for the nine months ended September 30, 2021 and September 30, 2020 was 25.8% and 26.4%, respectively.
+Added: The decrease in effective tax rate was due primarily to an increase in untaxed income attributed to noncontrolling interests, release of a valuation allowance on foreign tax credits utilized on the 2020 federal return, and a change in jurisdictional earnings, partially offset by a write down of a foreign tax receivable.
The difference between the effective tax rate and the statutory U.S.
−Removed: Federal income tax rate of 21.0% for the three and six months ended June 30, 2021 primarily relates to state income taxes and a recorded valuation allowance on foreign tax credits, partially offset by benefits related to income attributable to noncontrolling interests and federal research tax credits .
+Added: Federal income tax rate of 21.0% for the three and nine months ended September 30, 2021 primarily relates to state income taxes, valuation allowance recorded against foreign tax credit carryovers, and a write down of the foreign tax receivable, partially offset by tax benefits related to untaxed income attributable to noncontrolling interests and federal research tax credits .
Segment Results
5 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
dollars in thousands)
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Federal Solutions Adjusted EBITDA attributable to Parsons Corporation
4 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
dollars in thousands)
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Adjusted EBITDA attributable to Parsons Corporation
−Removed: The decrease in Federal Solutions revenue for the three and six months ended June 30, 2021 compared to the corresponding periods last year was primarily due to a decrease in business volume from program completions and wind-downs, a reserve taken on a program, and the competitive hiring environment for cleared personnel.
−Removed: The decreases were partially offset by increases from business acquisition of $29.3 million and $60.3 million for the three and six months ended June 30, 2021, respectively.
−Removed: The decrease in Federal Solutions Adjusted EBITDA attributable to Parsons Corporation for the three and six months ended June 30, 2021 compared to the corresponding periods last year was primarily related to a $6.9 million net impact from a reserve taken on a program during the second quarter of 2021, compared to a $9.0 million incentive fee recognized during the second quarter of 2020 in addition to decline in business volume.
+Added: Federal Solutions revenue for the three months ended September 30, 2021 compared to the corresponding period last year was flat primarily due to increases from business acquisitions of $51.6 million, offset by a decrease in business volume from program completions and wind-downs.
+Added: The decrease in Federal Solutions revenue for the nine months ended September 30, 2021 compared to the corresponding period last year was primarily due to a decrease in business volume from program completions and wind-downs, a reserve taken on a program, and the competitive hiring environment for cleared personnel.
+Added: The decreases were partially offset by increases from business acquisitions of $111.9 million for the nine months ended September 30, 2021, respectively.
+Added: Federal Solutions Adjusted EBITDA attributable to Parsons Corporation for the three months ended September 30, 2021 compared to the corresponding period last year was flat primarily due to offsetting increases related to acquisitions and decreases in business volume.
+Added: The decrease in Federal Solutions Adjusted EBITDA attributable to Parsons Corporation for the nine months ended September 30, 2021 compared to the corresponding periods last year was primarily related to a $6.9 million net impact from a reserve taken on a program during the second quarter of 2021, compared to a $9.0 million incentive fee recognized during the second quarter of 2020, partially offset by an increase related to acquisitions.
Critical Infrastructure
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
dollars in thousands)
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Adjusted EBITDA attributable to Parsons Corporation
−Removed: The decrease in Critical Infrastructure revenue for the three and six months ended June 30, 2021 compared to the corresponding periods last year was primarily due to a decrease in business volume from program completions and a write down on a project during the second quarter of 2021.
−Removed: The decrease in Adjusted EBITDA attributable to Parsons Corporation in Critical Infrastructure for the three and six months ended June 30, 2021 was primarily related to a $15.4 million write down on a project, partially offset by an increase in equity in earnings of unconsolidated joint ventures.
+Added: The decrease in Critical Infrastructure revenue for the three and nine months ended September 30, 2021 compared to the corresponding periods last year was primarily due to a decrease in business volume from program completions, lower pass through revenue, and write downs on projects during the second and third quarters of 2021.
+Added: The decrease in Adjusted EBITDA attributable to Parsons Corporation in Critical Infrastructure for the three months ended September 30, 2021 was primarily due to decrease in equity in earnings of unconsolidated joint ventures of $7.5 million, a write down on a project, and an increase to SG&A.
+Added: The decrease in Adjusted EBITDA attributable to Parsons Corporation in Critical Infrastructure for the and nine months ended September 30, 2021 was primarily related to write downs on projects and a decrease in business volume.
Liquidity and Capital Resources
4 unchanged sentences
We calculate our available liquidity as a sum of cash and cash equivalents from our consolidated balance sheet plus the amount available and unutilized on our Credit Agreement.
−Removed: As of June 30, 2021, we believe we have adequate liquidity and capital resources to fund our operations, support our debt service and support our ongoing acquisition strategy for at least the next twelve months based on the liquidity from cash provided by our operating activities, cash and cash equivalents on-hand and our borrowing capacity under our Revolving Credit Facility.
+Added: As of September 30, 2021, we believe we have adequate liquidity and capital resources to fund our operations, support our debt service and support our ongoing acquisition strategy for at least the next twelve months based on the liquidity from cash provided by our operating activities, cash and cash equivalents on-hand and our borrowing capacity under our Revolving Credit Facility.
We do not anticipate that the COVID-19 pandemic-related economic impacts will impair our ability to continue to maintain compliance with our debt covenants or access available borrowing capacity from our banks.
12 unchanged sentences
We focus on collecting outstanding receivables to reduce Net DSO and working capital.
−Removed: Net DSO was 68 days at June 30, 2021 and 69 days at June 30, 2020.
−Removed: The decrease in DSO was primarily due to strong cash collections during the second quarter of 2021.
−Removed: Our working capital (current assets less current liabilities) was $717.0 million at June 30, 2021 and $655.7 million at December 31, 2020.
−Removed: Our cash, cash equivalents and restricted cash decreased by $2.6 million to $484.6 million at June 30, 2021 from $487.2 million at December 31, 2020.
+Added: Net DSO was 68 days at September 30, 2021 and 69 days at September 30, 2020.
+Added: Our working capital (current assets less current liabilities) was $525.9 million at September 30, 2021 and $655.7 million at December 31, 2020.
+Added: Our cash, cash equivalents and restricted cash decreased by $210.5 million to $276.7 million at September 30, 2021 from $487.2 million at December 31, 2020.
The following table summarizes our sources and uses of cash over the periods presented (in thousands):
−Removed: Six Months Ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: Net cash provided by (used in) operating activities
+Added: Nine Months Ended
+Added: September 30, 2021
+Added: September 30, 2020
+Added: Net cash provided by operating activities
Net cash used in investing activities
−Removed: Net cash used in financing activities
+Added: Net cash (used in) provided by financing activities
Effect of exchange rate changes
−Removed: Net decrease in cash, cash equivalents and restricted cash
+Added: Net (decrease) increase in cash, cash equivalents and restricted cash
Operating Activities
−Removed: Net cash provided by (used in) operating activities consists primarily of net income adjusted for noncash items, such as:
+Added: Net cash provided by operating activities consists primarily of net income adjusted for noncash items, such as:
equity in earnings (loss) of unconsolidated joint ventures, contributions of treasury stock, depreciation and amortization of property and equipment and intangible assets, and provisions for doubtful accounts.
1 unchanged sentence
Our operating cash flows are primarily affected by our ability to invoice and collect from our clients in a timely manner, our ability to manage our vendor payments and the overall profitability of our contracts.
−Removed: Net cash provided by operating activities increased $69.9 million for the six months ended June 30, 2021 compared to the six months ended June 30, 2020.
−Removed: The change in net cash from operating activities is attributable to a $71.6 million increase in cash inflows from our working capital accounts (primarily from accounts receivable and contract liabilities offset by accrued expenses, accounts payable and contract assets) and a $17.6 million change in other long-term liabilities, partially offset by a $19.4 million decrease in net income after adjusting for non-cash items.
+Added: Net cash provided by operating activities increased $2,275 for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.
+Added: The change in net cash from operating activities is attributable to a $39,283 increase in cash inflows from our working capital accounts (primarily from accounts receivable and contract assets offset by accrued expenses, accounts payable and prepaid expenses and other assets), partially offset by a $(35,309) decrease in net income after adjusting for non-cash items.
Investing Activities
Net cash used in investing activities consists primarily of cash flows associated with capital expenditures, joint ventures and business acquisitions.
−Removed: Net cash used in investing activities decreased $6.0 million for the six months ended June 30, 2021, when compared to the six months ended June 30, 2020, primarily due to proceeds from sale of investments in unconsolidated joint ventures of $14.3 million and a decrease in cash used for capital expenditures of $13.8 million, partially offset by increased investments in unconsolidated joint ventures of $22.5 million.
−Removed: The Company had no business acquisitions during the six months ended June 30, 2021 and June 30, 2020.
+Added: Net cash used in investing activities in creased $194.4 million for the nine months ended September 3 0 , 2021 , when compared to the nine months ended September 3 0 , 2020 , primarily due to the use of $189.6 million, net of cash acquired, for the acquisition of BlackHorse Solutions on July 6, 2021, and the use of $8.4 million, net of cash acquired, for the acquisition of Echo Ridge on July 30, 2021.
+Added: The Company had no business acquisitions during the nine months ended September 30, 2020.
+Added: Net cash used in investing activities also increased due to increased investments in unconsolidated joint ventures of $ 2 8 .
+Added: 1 million , partially offset by proceeds from sale of investments in unconsolidated joint ventures of $14.3 million and a decrease in cash used for capital expenditures of $ 16 .
Financing Activities
−Removed: Net cash provided by financing activities is primarily associated with proceeds from debt, the repayment thereof, and distributions to noncontrolling interests.
−Removed: Net cash used in financing activities increased $21.4 million for the six months ended June 30, 2021 compared to the six months ended June 30, 2020.
−Removed: The change in cash flows from financing activities is primarily due to larger distributions to noncontrolling interests.
+Added: Net cash (used in) provided by financing activities is primarily associated with proceeds from debt, the repayment thereof, and distributions to noncontrolling interests.
+Added: Net cash used in financing activities increased $440.8 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.
+Added: The change in cash flows from financing activities is primarily due to repayment of the $50.0 million Series A tranche of our Senior Note during July 2021 and $348.5 million of net proceeds from the issuance of Convertible Senior Notes during the nine months ended September 30, 2020.
+Added: The Company also had larger distributions to noncontrolling interests of $32.8 million.
Letters of Credit
We have in place several secondary bank credit lines for issuing letters of credit, principally for foreign contracts, to support performance and completion guarantees.
−Removed: Letters of credit commitments outstanding under these bank lines aggregated to $219.2 million as of June 30, 2021.
+Added: Letters of credit commitments outstanding under these bank lines aggregated to $221.2 million as of September 30, 2021.
Letters of credit outstanding under the Credit Agreement total $45.0 million.
2 unchanged sentences
Off-Balance Sheet Arrangements
−Removed: As of June 30, 2021, we have no off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources.
+Added: As of September 30, 2021, we have no off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.